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Your paper should emphasize quality rather than quantity, and its structure should contain four sections: Introduction and objective, Review of Literature, Economic Analysis and Summary and...

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Your paper should emphasize quality rather than quantity, and its structure should contain four sections: Introduction and objective, Review of Literature, Economic Analysis and Summary and Conclusion. The minimum length of the course paper is 8 pages of text (not including the title page and the Reference section), double spaced, font Times New Roman 11 or 12. Longer papers may receive better grade.


a). The introduction should be 1-2 paragraphs long. Specify the objective as clearly as possible. It should set the relevance of the topic and finish with the main question or questions you want to answer in this paper.The introduction must also state your main argument, idea or hypothesis of your paper. Remember you are writing on a topic relevant to Managerial Economics. Therefore, the focus and content of your paper must be applied microeconomics, i.e., analysis of a topic related to a firm's profit-maximizing strategy, revenue structure or competitive strategy.

b). Review of Literature. In this section, review several studies similar to what you are writing on. Make sure to give proper credit to each author(s) whose work you are quoting. Use the APA guidelines in referencing each article, book, journal or the Internet source. In the final paragraph or paragraphs of this section, explain how your paper will contribute to the body of knowledge. This section should be 3-4 pages long.


c). The Economic Analysis section should be 2-4 pages long. In this section you should present the empirical evidence and with the help of some microeconomic tools, you should explain rationally what happens in reality. Include terms like demand, supply, variable and fixed costs, marginal or incremental changes, marginal and average costs, price elasticity, income elasticity, maximization, minimization, normal profit, competitive markets, product differentiation, market structure, oligopoly, and other relevant terms.


d) The summary and conclusion should be directly related to the objective of your paper. This section should be about one page long and it should answer the questions introduced in the objective of the paper. Be sure there is a strong connection between the introduction and the conclusion. You can also expand on the implications of your answer and predict something about the future.


The Final page or pages of your paper must contain the "Reference" section. The references must be drawn from the body of the paper. Use the APA style in listing the References. Your References should include at least one scholarly article relevant to your paper, a relevant book (not a textbook) and several Internet references.

Short papers are nice pieces of art.Your paper will be evaluated on the clarity of objective, rational coherence, quality of argument and format, more specifically on the contribution to the body of knowledge on the main subject. Below is the grading criteria of your paper.

Written Assignment Grading Standards

Points

Grammar, Punctuation, and Spelling

5

APA style for citations and no sign of plagiarism*

5

Clarity of objective, conclusion and strong connection between introduction and conclusion

20

Economic analysis using economic principles

10

Empirical evidence that supports economic analysis

10

Overall quality of the paper

10

Total

60


* If plagiarism is detected, your course paper grade is automatically 0. However, it may escalate to a more severe penalty. Refer to National University catalog for policy description on plagiarism.

3. Use Times New Roman font size 11 or 12 and double space your paper.

4. Information on APA style is available at our Library,http://nuls.nu.edu/web/trainingtools/assets/media/APA.pdforhttp://library.nu.edu/FindResources/ReferenceTools/citations.html.

5. Refereed papers are academic papers that were critiqued and reviewed by experts before being published. More information can be found inhttp://jerz.setonhill.edu/writing/academic/sources/journals/index.html
http://www.yukoncollege.yk.ca/~agraham/guides/guidec.shtml. Internet articles and newspaper articles are NOT usually academic articles that fill the bill as a valid reference.

6. To find the academic articles that you need for your paper (at least one), go to the following full text databases in our library: Business Source Premier (EBSCO), Emerald Management Xtra, LexisNexis Academic, ProQuest Databases and ProQuest Dissertations and Thesis. These databases are inhttp://library.nu.edu/FindResources/ResourceFinder.cfm. Databases have different sources or information, and you always have to combine them. Economists would say that databases are complements rather than substitutes, in other words, try more than one database.

Answered Same Day Jul 09, 2020

Solution

Soma answered on Jul 16 2020
137 Votes
2
Title of the paper: Strategic Actions by Oligopoly Firms
Name:
University:
Date:
I. Introduction and objective
Market structure plays a very important role in managerial economics. Oligopoly is a most common form of market structure where few large firms usually dominate the entire market. Sime of them are so large that they enjoy significant market power and able to affect the market price. A very important feature of oligopoly firms is that each firm’s optimal action depends on the actions of the other firm. While one firm intends to take any business decision, it has to take into account the strategic action of its rivals. The managers of the firms have to make predictions about how the key rivals will react to any decision they make. The resulting interdependence between firms and strategic behaviour make decisions difficult, complicated and uncertain. Price wars are common among the oligopoly firms but more than price wars the firms are found to engage in non-price competition. The purpose of this paper is to provide a thorough analysis of strategic actions of how oligopoly firms have to come up with the problem of interdependence and how they remain competitive in the market. (Maurice)
The key objective of this paper is to understand how the oligopoly firm compete with each other. Since the competition in oligopoly market structure is too intense, firms have to consider non-price strategic actions more than price competition. Oligopoly firms engage in strategic decision makings in order to have the most profitable outcome. The primary aim of this study is to examine different strategic actions by oligopoly firms in the real-world scenario. With the help of economic theories, concepts and real-life examples, this paper explores various competitive strategies by large oligopoly firms and how they help the firms to remain competitive in the market.
II. Review of Literature
The consequence of different strategic moves in oligopoly games has been the subject of extensive research in economic literature. There are several theoretical models in the study of managerial economics to understand the strategic behaviour of oligopoly firms that includes Sweezy models, Bertrand Competition, Cournot’s model, Stakelberg model and many others. Tong ZhangB. Wade Brorsen (2011), in their paper have thoroughly analysed the agent- based model. With the eampl of a perishable good, their model has shown that the Bertand solution is almost perfect competition when the marginal cost is zero. But in case of non -zero marginal cost, we do not have any theoretical equili
ium in pure strategies in the game. The agent-based model suggests that with one or two firms, prices are near the monopoly level that is completely matched with human experiments. When particle swarm optimization is used, in case of four firms, prices are always at the competitive level. But if genetic algorithm is used, the results are found to be noisier than particle swarm optimization. The results have shown that the human agents can reach the solutions through social norms whereas the it is missed out in simple agent-based model. (Brorsen, November 2011)
There is extensive literature of the entry strategies of various oligopoly firms in the real world. Audu, Amos Anyesha., Danjuma Naisla Hassan., Habakuk Aboki ( 2014) have provided indepth analysis of the entry strategy of Tesco, grocery retail giant, in UK and beyond. Tesco provides keen focus on non-pricing strategies that offers competitive edge to Tesco over its competitors. Non -pricing strategies are the conscious decision by Tesco in order to differentiate their strategy of selling different from their competitors. Tesco concentrates more on pricing strategies that includes advertisement, distribution,
anding and club card that are found to be successful business decision and help to expand Tesco’s market share. (Audu, August 2014)
Jeremy I Bulow & John D. Geanakoplos (1985) has discussed about the multimarket oligopoly in their paper. One firm’s action in one market may lead to change the competitor’s strategies in the other market. Now whether the change in firm’s action will cause a cost or benefit in the second market depends on whether competitor’s products are strategic substitutes or complements. So change in the strategic decision in one oligopoly market may affect the profit in the second market. They have extended their analysis to sequential market model where the firm makes a strategic decision in one period considering its impact on the second period. The research study has investigated that a change in one market is associated with a ramification effect in the second market even though the demand in two markets are unrelated. (Geanakopolis, 1985)
III. Economic Analysis with empirical evidence:
A. Strategic behaviour of oligopoly firms:
One of the key feature of oligopoly firms is that they act strategically. The equili
ium price quantity solely depends upon the strategic behaviour of the oligopolistic firms. Strong ba
ier to entry in the oligopoly market deters entry of new firms in the market. In some cases, oligopoly firms form a cartel and act as a monopoly where each firm split the profit. OPEC is the key example of cartel. Duopoly is another form of oligopoly where only two rival firms only serves the demand for entire market. The Nash equili
ium for such duopoly market occurs at the point where the best response functions for two firms intersect to each other. Duopoly firms produce more output than cartel but definitely charge lower price than the cartel. Price leadership is another a
angement in oligopoly market where one particular firm is selected as the market leader by a group of firms and observe the price sets by the leader and then matches it accordingly. Apart from aviation industry, oligopolies are prevalent in beverage (Coca Cola 45%, Pepsi 31%), Cars (GM 29%, Ford29% and Daimler Christler 16%) and Tobacco market (Phillip Moris 49%, RJR Nabisco 24% and Brown Williamson 15%). (Sheffrin, 2001)
Due to the fewness of the firms in oligopoly market, the firms; demand and marginal...
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