Week 3 Reflection
Identify an organization not previously selected and recommend methods to reduce costs. What effects do technologies have on costs? What are some lower-cost sources the organization can utilize to reduce costs? What considerations might cause a profit-maximizing firm to decide to forgo using lower-cost sources?
A: A small candy factory can install within itself improved machinery that would make it possible for the company to make more items. A small candy factory would benefit from technology in that it would make quantity supplied higher while retaining the same cost of production. Lower cost resources, such as only employing enough labor to equal capital would maximize profit. Also, better technology would maximize profit by creating efficiency. A profit maximizing firm should decide whether to cut costs by laying off workers to increase profit or to use better technology to increase production to increase profit which of course and the assumed idea is that at the present time the demand will stay constant and more supply will yield more profit.
· What market structure best characterizes the market in which University of Phoenix competes? How does this structure influence the university’s pricing strategy? How does University of Phoenix differentiate its product from that of its competitors? Has University of Phoenix erected nonprice barriers to entry in this market? Can University of Phoenix do more to create nonprice barriers to entry in this market?
University of Phoenix works in a Oligopsony market in which is a market form in which the number of buyers is small while the number of could be large. University of phoenix differentiates its product from that of other competitors by offering a chance to take take classes using the internet and flexibility of time. This allows U of Pheonix to target a specific segment of that market. Some nonprice barrierts of entry that University of Phoenix has created are customer loyalty and advertising.
A: A small candy factory can install within itself improved machinery that would make it possible for the company to make more items. A small candy factory would benefit from technology in that it would make quantity supplied higher while retaining the same cost of production. Lower cost resources, such as only employing enough labor to equal capital would maximize profit. Also, better technology would maximize profit by creating efficiency. A profit maximizing firm should decide whether to cut costs by laying off workers to increase profit or to use better technology to increase production to increase profit which of course and the assumed idea is that at the present time the demand will stay constant and more supply will yield more profit.
· What market structure best characterizes the market in which University of Phoenix competes? How does this structure influence the university’s pricing strategy? How does University of Phoenix differentiate its product from that of its competitors? Has University of Phoenix erected nonprice barriers to entry in this market? Can University of Phoenix do more to create nonprice barriers to entry in this market?
University of Phoenix works in a Oligopsony market in which is a market form in which the number of buyers is small while the number of could be large. University of phoenix differentiates its product from that of other competitors by offering a chance to take take classes using the internet and flexibility of time. This allows U of Pheonix to target a specific segment of that market. Some nonprice barrierts of entry that University of Phoenix has created are customer loyalty and advertising.