For CEO’s, today’s turbulent economic times is all the more reason to understand what will happen to the company’s bottom line if the incorrect decisions are made. Organizations today are making decisions on prices and how to market their product to the growing public and without certain competitive advantages, these firms will fail. This paper will discuss the impact on profits of Quasar Computers when it operates in four different industry’s (1) monopoly, (2) oligopoly, (3) monopolistic competition, and (4) perfect competition (Newman, 2012, pg. 70). A simulation will help us understand the impact on profits our decision has within the various industries.
Economics for Managerial Decision Making: Quasar Computers
The stage is set, you are the CEO of Quasar Computers and the company has just launched the world’s first all-optical notebook computer, Neutron. You have a team of highly competent executives to help you along the way to make Quasar the best company. Additionally, you have a three-year patent which will provide an opportunity to get a jump start on the market. As a business leader which is the best industry structure to enter into when coming out with a new product? With the help of a strategy simulation we will discuss the four main industry types (1) monopoly, (2) oligopoly, (3) monopolistic competition, and (4) perfect competition (Newman, 2012, pg. 70). The results from the various simulations will give us insight to how managers react in the ever changing economies in today’s world. Each decision that is made for the various industry type will show how each decision impacts the firm’s profitability and impact on overall organization performance.
Time to make the most of your three-year patent and make the most money you can to reinvest into your product in the future. The fundamental prerequisite for market power is the presence of barriers to entry which are...