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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 583 |
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A requirement of the perfect competition market is that products are identical; product improvements will mean Quasar’s products are no longer similar to their competitors’ products resulting in above-market profits. Eventually, Quasar’s competitors will duplicate their products, which could decrease market prices and revenue...
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Quasar has to be careful in raising their prices. This is due to a downward slope, by a monopolist. However, an increase will lead to a decrease in demand. Therefore, to improve profits even a monopoly player has to invest in advertising, improve productivity, and eventually cutting costs. More importantly, Quasar’s advertising team or department has to carefully strategize their planning, therefore by not to increase significantly, customers like when prices fair are and reasonable...
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