DeVry ECON312n week 3 Discussion - May 2017

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Week 3 Discussion DQ 1 & DQ 2

DQ 1

Concept of Cost (graded)

What are the differences between economic and accounting concepts of cost? How would you manage the costs associated with a value-creation activity? How do costs of operations relate to the strategy of the organization?

DQ 2

Prices Under Different Market Structures (graded)

How are prices determined under perfect competition? Think about a firm that you have done business with recently. What industry does this firm belong to? For example, McDonald's is a firm in the fast food industry. What market structure would this industry fall under? What are the names of other firms in this industry? Is it monopolistic competition, oligopoly, monopoly, or perfect competition? How does market structure affect the firm's ability to set the price for its products?

ECON312n week 3 Discussion - May 2017
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Bowman,       Under   competition a     said       price   because they     power       perfectly   firms are     comparison       market   their product,     not       they   to raise     would       product   another competitor     (additional       more   sold) is     the       is   on a     the       is   the total     demand       horizontal   perfect competition     producing       where   revenue equals     a       profits   more unit     less       result   a loss     Respectfully,       Essential   of Economics,     [VitalSource       from   vitalsource com/#/books/9781323184196/Professor     and       competition   firm is     Mark       Under   Market StructuresSusan     this       and   -- Although     curve       competitor   horizontal in     competitive       curve   the market     whole       like   normal demand     all       striving   maximize their     and       is   the economy     economic       is   opportunity make     in       by   supply, firms     the       the   curve to     (Bade       295)   can happen     is       production   increases capacity     average       automation   example, or     line       days   autos It     happen       lower   structures than     of       and   average costs     the       either   their cost     exit       this   be when     manufacturers       make   cars, and     stops       made   specialty producers,     firms       infrastructure   able to     same       per   but at     time       a   quantum of     the       product,   patent protections,     be       business   they can't     own       in   way differentiate     to       prices   which by     is       market   because they     the       fungible,   product and     new       different,   premium electric     the       supply   market price     and       profit   by at     of       away   are sticky     the       might   the benefits     profit       but   forever) As     down,       down   well, and     is       new   where MR     and       ATC 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