Quasar Simulation Analysis
Running Head: Quasar Simulation Analysis
xxxxxxx
Week four– Quasar Simulation Analysis
Professor xxxxx
Date: May 24, 2010
Introduction
Business is fierce and is a battle for survival on the entire spectrum of the value chain. Businesses survive and doomed because of the policies and the market conditions are not being in tandem. The management of Quasar Computers has an excellent opportunity to maximize the profit while delivering excellent product to its customers and stay ahead of the competition. The market condition is ever changing and management must adjust the policies and other strategies to reduce the cost and leverage the patented technology to be the leader in the optical computer systems technology to increase the value of for its stakeholders.
Pricing Strategy
The year 2003 is the great year for Quasar Computers for having been awarded the patent for the optical computers giving it a monopoly in this market segment. Neutron brand is catchy word that does a justice to this 21st century technology. The management can utilize the pricing strategy to maximize the profit in the monopoly market where it can set the pricing at this stage as no other competition exists. “The pure monopolist controls the total quantity supplied and thus has considerable control over price; it is a price maker. (Unlike the pure competitor that has no such control and therefore is a price taker.) The pure monopolist confronts the usual downward-sloping product demand curve. It can change its product price by changing the quantity of the product it supplies. The monopolist will use this power whenever it is advantageous to do so.” (McConnell-Bruce, page 438). Quasar can set the price at 2,550 per unit with a total cost of $12.18 (billion) and total revenue of $13.5 (billion) generating a total profit of $1.29 (billion). At this price range marginal cost is equal to marginal price. Quasar cannot charge whatever prices as monopoly firms must maximize the total profit
xxxxxxx
Week four– Quasar Simulation Analysis
Professor xxxxx
Date: May 24, 2010
Introduction
Business is fierce and is a battle for survival on the entire spectrum of the value chain. Businesses survive and doomed because of the policies and the market conditions are not being in tandem. The management of Quasar Computers has an excellent opportunity to maximize the profit while delivering excellent product to its customers and stay ahead of the competition. The market condition is ever changing and management must adjust the policies and other strategies to reduce the cost and leverage the patented technology to be the leader in the optical computer systems technology to increase the value of for its stakeholders.
Pricing Strategy
The year 2003 is the great year for Quasar Computers for having been awarded the patent for the optical computers giving it a monopoly in this market segment. Neutron brand is catchy word that does a justice to this 21st century technology. The management can utilize the pricing strategy to maximize the profit in the monopoly market where it can set the pricing at this stage as no other competition exists. “The pure monopolist controls the total quantity supplied and thus has considerable control over price; it is a price maker. (Unlike the pure competitor that has no such control and therefore is a price taker.) The pure monopolist confronts the usual downward-sloping product demand curve. It can change its product price by changing the quantity of the product it supplies. The monopolist will use this power whenever it is advantageous to do so.” (McConnell-Bruce, page 438). Quasar can set the price at 2,550 per unit with a total cost of $12.18 (billion) and total revenue of $13.5 (billion) generating a total profit of $1.29 (billion). At this price range marginal cost is equal to marginal price. Quasar cannot charge whatever prices as monopoly firms must maximize the total profit