BMGT 350 Lecture Notes - Lecture 4: Monopolistic Competition, Micromarketing, Planned Economy
Document Summary
Definition, comprehension, application look at lecture notes. Firm consumer flow of goods & services. Goals: consumption, satisfaction, choice, quality of life. Look at emerging trends, but outside your grasp of control. Pure competition: lots of sellers, market dictates price as a result, firm faces horizontal demand curve. Monopolistic competition: most common market structure, challenging, fir(cid:373)"s offeri(cid:374)gs percei(cid:448)ed as differe(cid:374)t. Oligopoly: few handful of sellers, potential entrants face extremely high barriers, r&d costs, capital outlay (initial seed money, technical know-how, signaling behavior legal collusion (advertisements also send messages to other companies) Monopoly: having no rivals (very rare, fed tries to break up natural monopolies. Discretio(cid:374)ar(cid:455) i(cid:374)co(cid:373)e = after (cid:455)ou"(cid:448)e paid for (cid:374)ecessar(cid:455) li(cid:448)i(cid:374)g e(cid:454)pe(cid:374)ses, this is (cid:449)hat"s left. Teens see nothing wrong with sharing copyrighted music. Teens represent major segment of downloading music. Existence of wealth effect for gen y + z. Talent dev costs, production + marketing costs. The new reality death of cds.