Market and Competitor Analysis of Hotel Industry

Market and Competitor Analysis of Hotel Industry Market Analysis: Industry and Competition EXECUTIVE SUMMARY Businesses fail to define satisfaction in the same way that customers do. Customer relationship satisfaction is measured by repeat business and recommendation of the store to others (Thompson 2004, p. 104). While customers can agree to these behaviours only â€Å"60% of customers who named a business they were loyal to, said they would also shop at the competition† (Donogh 2000, p. 1). How consumers perceive a company or product depends upon varying factors different for each individual (Whelan 2004). It is part of the job of the e-marketing analyst to disseminate how their client will gain market share and competitive advantage through marketing schemes. With regard to the tourism industry and creating customer relations, it is important to remain unique and as individual as every customer. How does one do this with limited time and funding? Customization of a web site is key to advantage but also creating a unique experience on the web site and at the destination is part of niche marketing and a main cornerstone to any tactic. GENERAL OVERVIEW It is of utmost importance to carry out an analysis of the industry per business operations and define the competition. As part of this presentation, a market analyst should keep in mind different models in which to decipher the current state of the market and where to gauge an organisation’s advantage. For the purpose of this presentation and understanding the tourism industry, four models chosen for this analysis are: (1) SWOT analysis, (2) PESTEL analysis, (3) Michael Porters Five Forces and (4) Boston Matrix. By comparing and contrasting the Althorn web site with the competition of other stately English homes, one can better assess the marketing plan and continue to make appropriate changes. The web sites chosen for review with Althopr.com are as follows: (1) Balmoralcastle.com and (2) Muscottmillfarm.co.uk. MARKET INDUSTRY ANALYSIS: SWOT Analysis The Historic Monument Travel Industry Strengths and Weaknesses are considered internal factors while Opportunities and Threats are external to company (‘SWOT Analysis’ 2005). It is important to note the analysis using this tool is very subjective in nature. When it comes to niche travel, England’s stately homes, castles and historic monuments fall into a very distinctive category that surprisingly appeals to many travellers’ sense of history. What makes the online presence special is being about to capture history while maintaining a certain level of current events, even celebrity about staying somewhere unique. (S)trengths: Places like Althorp and Balmoral have the essence of royalty engrained into the image and experience. These places have been witness to infamous times in history and famous people as well. (W)eaknesses: Historical travel destinations may also have an air of affluence about them, which could limit their target audience potential. This feeling of being beyond reproach may send mixed signals to the common man. (O)pportunities: Because places like Althorp and Balmoral are well known to the public because of their relationships to royalty, this propels them into the spotlight more than other less known sites like Muscott Mill. These places like Balmoral have history but also many opportunities that a smaller place cannot take advantage of. Places like Balmoral and Althorp also have a following where product sales with branding becomes key to continued image and public awareness. This allows them more interaction and further investment into different ways to capture the audience such as private rentals and entertainment events like golf and concerts. (T)hreats: Consumers may be afraid to travel because of the war in Iraq and threats of terrorism, increased security being time consuming. Also times are tight for a lot of people due to increasing energy costs and lack increased spending power. Many people have chosen to stay home or vacation close to home. Places like Althorp need focus on local tourism. ALTHORP.COM: CURRENT AND POTENTIAL MARKETS PESTEL Analysis This strategy analysis takes into account external forces, which may have influence on the organisations success (‘PESTEL Analysis’ 2005). (P)olitical: The political force that may influence Althorp is its relationships with the surrounding local community. Many do not want to see their ‘neighbourhood’ tarnished or changed by the tourist traffic or see Althorp take advantage of their royal status. Environmental: This is a very trendy topic, the notion of ‘going green’ but needless to say something to consider adopting as part of the new image tactic. Also Althorp should consider the fuel demands of travellers and maybe run a promotion with a local hotel or petrol station. (S)ocial: Social forces at work externally could be a fear of flying or travel. Also in times of trouble, people band together, become closer within their communities. Althorp should consider looking closer to home and cultivating a relationship with locals. They should use the Internet as a tool to focus globally. (T)echnological: Obviously the web site is classy and reflects the overall image of Althorp as a stately home with beautiful grounds. The web site should using appropriate e-tools to continue consumer interaction. These e-tools vary from pod casting to blogging but also create a more intimate interaction with the public, which also reflects another image of Althorp being a special place for Princess Dianna. Continued evolution of the web site can bring a feeling of closeness to the site it lacks currently. This may involve further investment to update software and hire a Web master or graphic designer. (E)cological forces at work for Althorp include once again the price of fuel or energy source and its prolonged use at the site, the affect it has on the environment. Has Althorp considered what affect it may have on the global warming? It would environmentally sound for the company to research ways to conserve and protect the environment maybe through a conservation project in conjunction with another site. (L)egal forces or changes in the laws that govern travel are constantly in issue. Also Althorp must keep in mind a lot of times people are not culturally aware of differing laws that apply when travelling. It is important that not only the house watch for the risk legal issues cause but also look out for its employees giving the correct information to customers. THE COMPETITION: BALMORAL AND MUSCOTT MILL FARM BALMORALCASTLE.COM PORTER’S FIVE FORCES Customer Bargaining Power High Today’s Internet savvy consumer is educated when it comes to their travel plans. This gives the consumer power over places like Balmoral to match their need for a web site that will understand their intelligence. They know what they want and at what price they want it. They may chose a different destination if they don’t like the web site. Threat of Substitute Products and Services – Emerging This is where diversification of services at Balmoral becomes important and an asset. The future of these places depends on presentation of different formats and product specialty to keep the customer’s attention. These niche locations like Balmorals will meet consumer demand of specific needs. Supplier Bargaining PowerMedium The bargaining power of Balmoral is relatively medium because of the nature of the product. Balmoral must remain at above industry standard while maintaining the sense of class found and that level of services. Threat of New Entrants – Emerging New entries into the market, one would think should be low because of the designation of this being a niche destination as historical but the truth is places like Balmoral must compete outside their niche for capture of customers. They compete with theme parks and adventure vacations of the like. Many tourists because the information from the Internet is so vast are looking for something beyond the regular vacation. The Overall Level of Rivalry – Moderate There is a perception that the more densely populated the area becomes the higher the competition with the company struggling for market participation. This is an incorrect assumption because most of niche travel locations are operating online mainly suppliers to manufacturers or to the public. This results in less advertising and an environment where the competitive spirit is unvoiced. MUSCOTTMILLFARM.CO.UK Boston Matrix Analysis There are four areas that divide the matrix so that a place like Muscott Mill Farm can be differentiated from other stately English homes or working historic monuments. The place falls into one of these areas. The four areas are as follows: (1) Stars, (2) Cash Cows, (3) Question Marks and (4) Dogs (‘Boston Matrix’ 2005). Stars are tourist sites like Balmoral or Althorp that have a strong presence in the market and they are able to keep up, even be ahead of the competition. Balmoral, while stoically regal also maintains a global image because of it being the Queen’s summer residence. Cash Cows are smaller places of interest like Muscott Mill that are not in the spotlight and may be hidden from the average tourist’s mind (‘Boston Matrix’ 2005). Many smaller historical sites are becoming cash cows because of operating cost increases but also the aftermath of 9/11 remains. People are not as eager to travel and the price of airfare keeps people closer to home. Muscott Mill would be better off focusing on local markets for shorter weekend holidays. Question Marks are companies that have potential to make money if they are run properly (‘Boston Matrix’ 2005). A good example of a Question Mark in the industry would be smaller BB type places but not at the level of Musc ott Mill. They are constantly facing challenges with their operations management and particularly labour disputes. Dogs are companies that are just terrible, have no potential and should be out of business but continue to struggle (‘Boston Matrix’ 2005). Euro Disney is the prominent example. It has never lived up to the hype. Muscott Mill Farm remains at the bottom of the chain of advantage because it is not well known by the public as a destination. Its web site is quaint at best and not at all interactive but yet one can see the purpose it serves to at least introduction someone to its existence. EVALUATION OF MARKETING COMMUNICATION AND CRM A company’s marketing and recognition begins with its name. Because the business of tourism is greatly service oriented, it is of utmost importance that the company’s name has integrity. With time, as the organisation further establishes itself, the two will become interchangeable. The organisation has a reputation to uphold where market share remains wide-open and competitive advantage strong. Recently the house’s name and intellectual property in the forms of trademarks and brand has been at the forefront, in constant view thanks to e-business. John M.T. Balmer surmises that much of the problem with establishing a marketing framework for organisations is built on the concept that the notion of identity is vague to the corporation and therefore the consumer. Defining identity and therefore CRM becomes a challenge now especially as business practices change and shift to encompass all areas of focus and strategy. Balmer’s (2001) research writes of, â€Å"identity was a pressing issue for many institutions and that the question of identity, or of what the organisation is or stands for, cuts across and unifies many different organisational goals and concerns† (p. 250). Hence the confusion and challenge of figuring out exactly what identity is for a particular organisation because it is different for each. CONCLUSION The purpose of this presentation was to demonstrate different market strategy models that allow one to analyse not only the particular industry but also the competition. The niche travel destination market has its strengths and weaknesses but also these are areas that Althorp can use to make its marketing scheme better. The competition for the United Kingdom is vast but Althorp has many elements on its side as a special location for travellers. The main focus of any marketing scheme should be to know how to capture the mindset of the individual to reach a higher state of competitive advantage and this begins and ends with conveying the correct brand image. REFERENCES Allen, G 1999, Introduction to Marketing, Mountain View College, Mountain View, California. ‘Althorp’, Althorp.com, viewed 5 Aug. 2008, http://www.althorp.com.> Balmer, J M T, Fukukawa, K Gray E R 2001, The Nature and Management of Ethical Corporate Identity: Discussion Paper on Corporate Identity, Corporate Social Responsibility and Ethics, Bradford School of Management, England. Balmer, J M T 2001, ‘Corporate identity, corporate branding and corporate marketing seeing through the fog’, European Journal of Marketing vol. 35, 3/4, p. 248-291. ‘Balmoral Castle’, Balmoralcastle.com, viewed 7 Aug. 2008, http://www.balmoralcastle.com.>. ‘Boston Matrix or Boston Consulting Group Box BCG Box’, viewed 5 Aug. 2008, http://www.tutor2u.net/busines/strategy/bcg_box.htm.>. Donogh, J 2008, ‘Customer Loyalty—From the Customer’s Perspective’, viewed 3 Aug. 2008 www.refresher.com/!loyalty2.html>. Kotler P, 1999, Kotler on Marketing, Free Press, New York. ‘PESTEL Analysis’, viewed 5 Aug. 2008, http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCESitemid=1074451452> Peters, T 2003, ‘Helping Small Firms Put the ‘e’ in Trade’, International Trade Forum,  1 July. Pitturo, M 1999, ‘Get into the e-Commerce Without Betting the Store’, Journal of  Accountancy, 1 May. Porter, M E 1999, Strategy and the Internet, Harvard University Press, Cambridge. Porter, M E 1985, Competitive Advantage: Creating and Sustaining Superior Performance. The Free Press, New York. ‘SWOT Analysis’, viewed 5 Aug 2008, http://www.quickmba.com/strategy/swot/.>. Thompson, H 2004, What They Want: Ten Myths About Your Customers, Prentice-Hall, Clifford Falls, New Jersey, p. 103-112. Whelan, D 2004, ‘Build It and They Will Come’, Forbes, 27 Dec 2004. APPENDICES APPENDIX A SAMPLE POSSIBLE QUESTIONNAIRE 1. How do you rate Althorp’s web site overall ease of use? (1=very easy; 5=very difficult) 2. Having Althorp’s picture of the web sites you visited (1: strongly agree; 5=strongly disagree; 6=no opinion) a. Reflects how you think about the web. b. Gives you more confidence in exploring the web. c. Slows down the computer too much. d. Helps you feel more adventurous. e. Lets you know where you are in the web. f. Takes too much time to use. g. Helps you move around in the web. h. Makes me feel like I’m travelling throughout the web. i. Takes up too much space on the screen. j. Makes web organisation clearer. 3. Please rate how you think Althorp would be for the following functions (very useful, useful, not useful, don’t  know): a. Pure Entertainment (games, chat, humor) b. Personal uses (hobbies, health, recipes, travel) c. Business (buy and sell, product info, banking) d. Academic (exchange data and results, communicate with colleagues, grad info). 4. I feel that looking for information on the World Wide Web using Althorp.com is: (Strongly Agree, Agree, Neutral, Disagree, Strongly disagree, Don’t Know): Easy; entertaining; confusing; complicated; intimidating; hard; boring; straightforward; simple; frustrating.

Milk Analysis

Milk The movie â€Å"Milk† was based on a true story of a gay activist in San Francisco, Harvey Milk. Milk shows his story through his statements through a recording made before he was assassinated. He narrated what happened to him during the last eight years of his life (40-48). It showed how confidently Milk went out of the closet and fight for the rights of gays. Milk became the representative of the growing population of gays in San Francisco. Milk eventually ran for the office because being in the office will be the best way to easily fight for gay rights.Milk won and at the same time, another politician who was against the ideologies of Milk won also, Dan White. This marks the growing conflicts between the two. White regards gay as social deviants. Not only did he consider gays as social deviants but also Asians especially the Chinese people but Milk showed no hostility towards White in fact he tried to work professionally as co-politicians with White but in the end of t he movie, Milk was killed by White.Relating to the course, homosexuals can be considered as deviants because they violate the gender norms which includes only male and female but for me, homosexuals nowadays should not be cons idered deviants at all because a large percentage of the world’s population includes homosexuals already and as I can remember through our discussions in class, in order to be considered deviant, these people should represent only a small number of people but relating to the movie, what Milk has done can be considered as tertiary deviance. Tertiary deviance is a deviant act when an individual tries to label a deviant act as non -deviant.As portrayed in the movie, Milk fought for gay rights. He wanted people to regard gays as equal with the heterosexuals and normal people. In the movie, Milk managed his being homosexual through his charismatic characteristics as a gay activist he believed that he can be an effective re presentative of the gay community b ecause a lot of people liked him whether gay or straight. A lot of people supported his ideas since he was the first ever gay who had been elected for a position in the government. The society had different reaction to Milk’s actions.There are people who like him and supported him and there are also people who stayed as homophobic and believed that gay people should not be given jobs as teachers because they believe that these gays will just teach their children to also be gays. Reactions of people were different from one another depending on the perspective of the people and the belief that they hold onto. If these people are openminded, they would react to the gay activism as a normal behavior b ut in the movie it seemed that there are people who cannot take the fact that there are other people in the society who hold different beliefs.A lot of factors can be considered why these people stay close-minded to the social realities. This is may be because of how they were broug ht up. Family, especially parents has great impact on your beliefs while you grow up. Another factor is religion. Religion has the power to make people follow its beliefs and hold onto it as much as possible. I also consider Dan White as deviant because he committed murder against a co-politician who is against his ideologies.

Equilibrium: Supply and Demand and Price

Test Version A SEMESTER I EXAMINATIONS Mid-Term Assessment ECON 30110 Microeconomics II Time Allowed: 50 minutes Instructions for Candidates This exam counts for 30% of the Module Grade. All questions carry equal marks. Note there is NO negative marking Correct answer is worth 1 mark. No answer or more than one answer, will both receive a 0 mark. Incorrect answer will receive a 0 mark. Attempt all 20 questions. Shade in the box in the appropriate space with a HB pencil on the RESPONSE SHEET. Write the test version at the top of the RESPONSE SHEET You may use the paper provided to make notes or calculations to help you.Instructions for Invigilators Foreign language/English dictionaries are permitted. Non-Programmable Calculators are permitted NO MOBILE PHONES ALLOWED 1. If two people in a pure exchange economy have identical utility functions, then they: a) may want to trade if their marginal rates of substitution are different b) will want to trade if they are on the contract curve c ) will not want to trade if their consumption bundles are not Pareto-efficient d) will only want to trade if they are not at their endowment e) may want to trade if the price ratio is not equal to one nswer a If MRSA is not equal to MRSB, the two consumers will be able to arrange a mutually beneficial trade. Mutually beneficial trade will not occur only when the allocation of resources among A and B is already efficient. In the case of our two-consumer economy, MRSA=MRSB indicates an efficient allocation of goods (on contract curve). 2. Suppose in a two-good (X and Y) two-person (Ann and Bob) exchange economy, the MRS for person A is YA/XA and the MRS for B is YB/XB. The total amount of X is 40 and the total amount of Y is 40.Ann has an initial endowment of 10 units of X and 30 of Y, while Bob has the remainder. This implies: a) No trade will take place. b) Ann will give some of Y to Bob in exchange for X. c) Ann will give some of X to Bob in exchange for Y. d) Ann will give some of X and Y to Bob. e) There is no enough information to make any predictions Answer b: MRSA = 30/10 = 3 Ann will give 3Y for 1X (or 1Y for 1/3X) MRSB = 10/30 = 1/3 †¦. Bob will give 1Y for 3X (or 1X for 1/3Y) Ann will trade Y for X (gives 1Y for min 1/3X and Bob accepts †¦.. n exchange for 1 Y will give up to 3X) 3. An Edgeworth Box is shown for individuals A and B, along with the contract curve. Which of the allocations b through i can be reached through free trade from â€Å"a†, and once they have been reached no further mutually beneficial trade is possible? a) Allocations b, e and f only b) Allocations c, i and f only c) Allocations d, c, i, g and h only d) Allocations c and i only e) None of these Answer: d Given endowment a, only points within the lens shaped area are mutually beneficial, or pareto superior (so points c, i and f).That is to say, any point outside of this lens would result in at least one of the individuals being worse off compared with point a. However, at only the points on the contract curve illustrate outcomes that are pareto efficient – where the indifference curves are just tangent (MRS of A and B are equal). That is to say, pareto efficiency means that no one can be made better off without someone else being made worse off. So all the gains from trade are exhausted and no further mutually beneficial trade is possible. Point f is not on the contract curve, represents a case where MRS of A and B are different, and hence a case where further mutually beneficial trade is possible. ) 4. An Edgeworth Box is shown for individuals A and B. The endowment point E represents the initial allocation of the goods X and Y. A price line is shown passing through points E, A and B, representing a given price ratio of –PX/PY. At this given price ratio, which of the following statements is True? a) We are at a competitive equilibrium ) To achieve a competitive equilibrium, the price of good Y will rise and/or the price of good X must fall c) To achieve a competitive equilibrium, the price of good X will rise and/or the price of good Y must fall d) To achieve a competitive equilibrium the price of both goods must rise e) We cannot achieve a competitive equilibrium given the initial endowment Answer b At the given price ratio, there is excess demand for Y and excess supply of X. This means that the price of good Y will rise and/or the price of good X must fall.Process continues until all excess demand and supply are eliminated, and IC tangent to each other (on the Contract curve) and to the price line (which will now be flatter. So in the competitive equilibrium all markets clear, MRSA = MRSB = PX/PY. (see lecture overheads) 5. Suppose the production possibilities for two countries, A and B, producing two goods, X and Y, are as follows: | A| B| X| 2| 7| Y| 4| 7| They can each produce any linear combination as well. Measuring X on the horizontal axis, the joint production possibility frontier: a) will k ink away from the origin at 7 units of X. ) will kink toward the origin at 7 units of X. c) will kink away from the origin at 2 units of X d) will kink toward the origin at 2 units of X e) will not have a kink answer: a jointly the countries can produce either a total of 9X or 11Y. MRT of A is – 4/ 2= -2 MRT of B is – 7/7 = -1 Country B has comparative advantage in X (gives up 1Y for additional 1X †¦ whereas country A needs to give up 2Y for an additional X). Country A has a comparative advantage in production of Y (gives up 1/2 X for additional 1Y †¦Ã¢â‚¬ ¦ whereas B must give up 1X for additional Y) Jointly then can produce 9 X and 0 Y †¦Ã¢â‚¬ ¦ or 11Y and 0 X.These define the intercepts of the joint PPF. Kink arises where both countries specialise in good in which have a comparative advantage: so B produces only X (i. e. 7X) and A produces only Y (i. e. 4Y) If jointly produce more than 7X then B produces only X, and A both X and Y (with MRT of -2). If jointly produce more than 4Y then A produces 4Y and B both X and Y (with MRT of -1). Hence answer a 6. Competition results in the efficient product mix because: a) the slope of the production possibility frontier will equal the slope of the contract curve. b) the distribution of the final output is Pareto efficient. ) producers are setting MRT equal to minus the price ratio while consumers are setting MRS equal to minus the price ratio ensuring that MRT will equal MRS. d) consumers are on the contract curve e) none of these answer c ( see self assessment sheet 2, Q1, part iv. 7. One test of whether a firm is a profit-maximizing monopoly is to check whether the firm is operating in the elastic portion of its demand curve. Why is this a relevant test and what would the elasticity be if the firm were maximizing revenue? a) If a firm were operating in the inelastic portion of the demand curve, it could raise its price and increase profit.Revenue is maximized when elasticity equals â₠¬â€œ 1. b) If a firm were operating in the inelastic portion of the demand curve, it could raise its price and increase profit. Revenue is maximized when elasticity equals 0. c) If a firm were operating in the elastic portion of the demand curve, it could raise its price and increase profit. Revenue is maximized when elasticity equals – 1. d) If a firm were operating in the elastic portion of the demand curve, it could raise its price and increase profit. Revenue is maximized when elasticity equals 0. e) None of these. Answer a see lecture and also self assessment sheet 3, question 1 part (v) for related question) 8. Consider a firm that is the sole producer of a homogeneous product. It faces a market demand function of Q =100 – P , where P is the price of the good, and Q is the quantity of the good demanded. The firm’s costs of production are given by 40Q. The profit maximising price is then given by: a) P = 100 b) P = 60 c) P = 30 d) P = 70 e) None of these so lution d: Monopoly. Profits ? = TR-TC Profit max where MR = MC Q = 100 – P and hence P = 100 – Q So TR = 100Q – Q2 So MR = 100 – 2Q TC = 40Q so MC = 40 MR = MC implies 100 – 2Q = 40Thus Q = 30 Therefore P = 100 – 30 = 70 9. Consider a firm that is the sole producer of a homogeneous product. It faces a market demand function of Q =100 – P , where P is the price of the good, and Q is the quantity of the good demanded. The firm’s costs of production are given by 40Q. Then the firm’s Lerner index is equal to: a) 1/2 b) 3/4 c) 11/7 d) 1 e) None of these Answer e: none of these From previous question, optimal P = 70 Lerner index = (p-c)/p = (70 – 40)/70 = 30 / 70 = 3/7 10. This figure shows the demand and cost curves facing a monopoly. 80 60 40 20 800 600 400 200 0 The deadweight loss of the monopoly is: a) 48000 ) 4000 c) 2000 d) 32000 e) None of these Answer c: Draw in MR curve – cuts horizontal axis at ? Q of demand function, and has same intercept at the D on the vertical axis. MR cuts horizontal axis at Q = 40 Setting MR = MC allows monopolist to charge P = 600 (and output of Q = 20) (note: alternatively, from picture can see that expression for demand function is P = 800 – 10Q †¦Ã¢â‚¬ ¦.. when Q = 0 then P = 800 †¦.. and slope given by – 800 / 80 = – 10 Hence, TR = 800Q – 10 Q2 and so MR = 800 – 20Q. Set MR = MC we get Q = 20 and substituting into inverse demand we get P = 600) Competitive output occurs where P = MC = 400 and so Q = 40DWL = area of shaded triangle = ? (600 – 400) * (40 – 20) = 100*20 = 2000 11. Suppose a monopolists price elasticity of demand is –5, and the marginal cost of production equals â‚ ¬80. The monopolist’s profit maximising price is then equal to: a) 75 b) 400 c) 16 d) 100 e) Cannot be computed with the information given Answer d Lerner index = (p-c)/p = 1/e So (p – 80)/p = 1/ 5 Hence solving for p gives p = 100 12. If the government regulates a natural monopoly by forcing it to set a price equal to Marginal Cost then a) the natural monopoly will still make high profits. b) the natural monopoly will shut down ) the natural monopoly’s marginal cost curve will shift down. d) the natural monopoly's marginal cost curve will shift up. e) the natural monopoly will earn zero profits answer b. Natural monopoly has MC below AC. So p = MC would mean loss – which would mean exit 13. perfect price discriminating monopolist: a) generates a deadweight loss to society. b) Provides quantity discounts to customers buying larger quantities c) charges each buyer her reservation price. d) charges different prices to each customer based upon different costs of delivery. e) reduces, but does not eliminate, consumer surplus nswer c see lecture. With perfect price discrimination each consumer charged reservation price, which allows monopolist to fully extract consu mer surplus (so CS is zero) and maximises total social welfare (so no deadweight loss) 14. A monopoly sells to two countries, and resales between the countries are impossible. The demand functions of the two countries are given as P1 = 100 – Q1 P2 = 120 – 2Q2 The monopolists marginal cost is â‚ ¬30. The profit maximising monopolist will set prices as follows: a) P1 = 65 and P2 = 75 b) P1 = 35 and P2 = 22. 5 c) P1 = 68. 33 = P2 d) P1 = 100 and P2 = 60 ) None of these Solution a: Profit max monop will choose p1 to max profit in country 1, and choose p2 to max profit in country 2. We have two separate demand functions. Hence, this implies MR1 = MC and set MR2 = MC TC = 30Q TR1 = 100Q1 – Q12 MR1 = 100 – 2Q1 = 30 MC Solving: Q1 = 35 And hence P1 = 100 – Q1 = 65 TR2 = 120Q2 – 2Q22 MR2 = 120 – 4Q2 = 30 MC Solving: Q2 = 45/2 = 22 ? And hence P2 = 120 – 2Q2 = 120 – 45 = 75 15. Two firms, A and B, selling identical products fac e an inverse market demand function given by P = 100 – Q, and each have a constant marginal cost of 40.The firms simultaneously choose quantities to maximise profit. Firm A’s reaction function can then be written as: f) qA = 30 – qB g) qA = 30 + ? qB h) qA = 60 – qB i) qA = 30 – ? qB j) None of these Answer d: DEMAND : P = 100 – Q Two firms in the industry, so Q = qA + qB Hence we can write P =100 – qA – qB Profit function for firm A: = TR – TC = P qA – C Thus, ? A = 100qA – qA2 – qAqB – 40qA Firm A will choose qA to maximise profit, given the qB set by its rival B †¦.. First order condition for profit maximisation then is A / ? qA = 100 –2 qA – qB – 40 = 0Rearranging, we find qA = (60 – qB) / 2 = 30 – ? qB †¦.. this is firm A’s reaction function †¦Ã¢â‚¬ ¦ in order to maximise it’s profit, firm A will choose and output qA that is a best response to qB †¦Ã¢â‚¬ ¦ Identical firms, so similarly qB = 30 – ? qA †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. this is firm B’s reaction function †¦Ã¢â‚¬ ¦ in order to maximise it’s profit, firm B will choose and output qB that is a best response to qA†¦Ã¢â‚¬ ¦ 16. Two firms, A and B, selling identical products face an inverse market demand function given by P = 100 – Q, and each have a constant marginal cost of 40.The firms simultaneously choose quantities to maximise profit. The equilibrium outcomes are: k) P = 40 and qA = 30 = qB l) P = 60 and qA = 20 = qB m) P = 70 and qA = 15 = qB n) P = 100 and qA = 20 = qB o) None of these Answer b Solving reaction functions: 1) qA = 30 – ? qB 2) qB = 30 – ? qA Substituting equation (2) into equation (1) we can then solve for the optimal qA that A should choose to maximise profits†¦. qA = 30 – ? (30 – ? qA) qA = 20 Since we have identical firms, we know that similarly we can so lve for qB = 20 Market quantity Q = qA+ qA = 40 And we can solve for the market price.Since P = 100 – Q this implies that P = 60 17. In a Bertrand model with differentiated products p) price is independent of marginal cost. q) firms set price at marginal cost. r) firms set price independently of one another. s) firms can set price above marginal cost. t) price may be either equal to or above marginal cost answer d 18. In a homogeneous good Bertrand model, the equilibrium price u) declines with the number of firms in the market v) is independent of the number of firms in the market w) is independent of marginal cost x) is above marginal cost . ) is the same as the monopoly price answer b (note n = 1 implies a monopoly and not an Oligopoly). for n = 2, p = mc †¦.. and for all n;2 price = mc so price does depend upon mc, is equal to mc, and is independent of the number of firms in the market 19. In the long run in a monopolistic competitive market, a) Firms will set P ; MC and produce where P = AC b) Firms will set P ; MC and produce where P ; AC c) Firms set P = MC and produce where P = AC d) Firms set P = MC and produce where P ; AC e) Total Social Welfare is maximised Answer a Have market power: set P ; MC †¦. ut no entry barriers, so in long run all profits are eroded and so P = AC and profits are zero 20. The payoff matrix for two firms, A and B, that must choose between setting a High or Low price strategy is shown as follows: | Firm B| Firm A| | Low| High| | Low| (10 , 10)| (25 , 5)| | High| (5 , 25)| (20,20)| A Nash equilibrium in this game is: a) Both firms set a High price b) Both firms set a Low price c) Firm A sets a Low price and firm B sets a High price d) Firm A sets a High price and firm B sets a Low price e) There is no nash equilibrium in this game Answer b

The Peculiarities of Writing a Good Laboratory Report

The Peculiarities of Writing a Good Laboratory Report How to Write a Good Lab Report Laboratory research presupposes the implementation and analysis of the particular research, which yields results by means of practical research methods and experimentation in the specifically designed and equipped facility, called a laboratory. In general, the essence of a laboratory practicum lies in thorough examination of different phenomena and laws applying previous scientific experience and theoretical knowledge. Any lab research is comprised of the following procedures: making theoretical calculations; obtaining experimental data; summarizing and analyzing the acquired results in the form of a report. How to Write a Lab Report for College If you are assigned a lab report for the first time, you are probably stressed out, because it is a no mean task that requires much time and efforts to ace it. If you have friends who are assigned the same thing, you are in luck since you can collaborate and help each other out. Even if you are unversed in how to do a lab report, your innate brilliance and info found on the Internet will enable you to complete the assignment correctly and timely. Also, you can reach out to your professor and ask him to provide you with some templates so that you could at least have an insight into the formatting of this type of writing. When there is no one to turn to and the deadline is looming on the horizon, review the tips that we have prepared for students to make the experience of writing a lab report more interesting and easier. First and foremost, lets have a look at the proper structure of lab reports. Title page includes the title of the report as well as other necessary info; At the very beginning, the author defines the aim of the paper and describes the physical phenomenon under consideration. Usually, this section is called an abstract that contains a brief summary of the entire work. Sometimes, the equipment, methods, and materials utilized for the fulfillment of the research are also mentioned in the abstract. The abstract is followed by an introductory paragraph where the main point of the research is stated. All results and measurements from the laboratory register go to the corresponding tables that are immediately followed by a rubric. Depending on the field of knowledge and the purpose of the lab research, the section with calculations includes formulas, figures, and the applied methods of measurement, as well as the evaluation of the role of those factors in the direction of the research. Formulas should be followed by interpretation and subsequent calculations made by means of actual numerical data. Infographics that influence the course of the study and are relevant to the object of the research should be placed as an appendix if they are not included in the main part of the paper. The concluding part revolves around conclusions with regard to all obtained findings and their explanation on the basis of theoretical knowledge. The report should be formatted according to the standard requirements of your school/college/university. Frequently, they provide their own templates that students have to utilize while writing a report. It is recommended to review an exemplary sample of a lab report online, especially if you are planning on completing this assignment with flying colors. This way, you will know for sure how the final version of this type of writing should look like. If you think your choice of the topic is specific enough to influence the way your work is structured, you should definitely search for some examples. This way, you will not need to do additional reading and then toil at rewriting; also you will learn how to write lab reports to suit particular standards. In case you question the quality of the sample you have come across, ask your professor whether it will be ok to stick to the same structure as in the example. Some other constructive pieces of advice to take into account include: Make sure that the flow of information you present is logical and comprehensible; Get rid of ambiguity (it particularly concerns pronouns and progression); The tone of writing should be neutral; avoid the narration in first person; Underline all scientific titles; Adhere to the metric system when mentioning measurements; Spell out numbers less than 10 Ask someone who is knowledgeable about the subject you investigate to read your paper and give feedback on it; The info outlined above should be enough for the successful completion of this type of written assignments. Remember that lab reports do not like procrastination as there are many stages of research that need to be conducted incrementally and with extra attention especially if many calculations are involved. It is crucial to submit a lab report of an excellent quality because the grade you will get for it will affect your general academic performance. If you are in a tight spot and you need to submit a lab report in a couple of days, you can use the assistance of the Pro-Papers.com and stay out of trouble with our outstanding writing services. You can rest assured, because every order you place is taken by professional writers that do their best to deliver an impeccable paper. They write papers according to the requirements provided or proofread them and suggest all possible ways of improving the paper in case yours needs editing. You can also cooperate with the writer who is respons ible for your assignment and let him/her know about additional instructions or corrections via chat. Thus, whenever you have a hard time nailing any type of written assignment, place an order on the Pro-Papers.com and be sure to get a paper that stands out.

The Ancient Egyptian Economy essays

The Ancient Egyptian Economy essays Ancient Egypt had a large range of resources at its disposal varying from food and Cloth to Metals and Gems. A small list of some of Egypts resources are as follows grain, vegetables, fruit, fish, cattle, goats, pigs and fowl were the primary food resources and Flax was also grown to be spun into linen. A large proportion of the grain grown was used for beer production. Natron was also produced for use in embalming but was too expensive for all but a few. The metals of Egypt were quite varied but only a small number were used they included copper, bronze and iron. Gems for the upper classes and the pharaoh and much stone was quarried for the construction of temples and of course the pyramids. The majority of the population more than nine tenths lived on the land in mostly village communities. The land they worked belonged in theory to the gods and in particularly the gods Osiris and Horus and his earthly incarnation or Avatar if you please, the pharaoh. Apart from the tenant peasants a large section of the population worked as farm laborers on the estates of noblemen and of the temples. During the New Kingdom perhaps a third of the land was in the hands of the priesthood with a large number of workers and slaves. Administrators, priests, traders and craftsmen lived mostly in the cities along the Nile, which could be supplied with provisions relatively easily and cheaply by boat. This Pie chart is a rough estimate of the social class of Ancient Egypt and what proportion of the population is in each. Vehicles with spoked wheels came into use during the New Kingdom and served mostly for warfare and sport and horses were introduced soon after but were never a major economic commodity. Poorer people continued to use Stone and wooden tools for most crafts well into the bronze and even Iron Age. The harnessing the Egyptians used on animals were extremely inef ...

Advantages of the current healthcare insurance in the US Essay

Advantages of the current healthcare insurance in the US - Essay Example Reports from Federal Budget and General Accounting Office of USA display the fact that if universal health care is implemented then there would be a saving of $100- $200 billion per year. This is a huge monetary benefit that country can secure for other vocations. The advantage was understood by the Canada government long back, in 1971 and they adopted single-payer system. People are much happy by adopting this system and they are contentedly enjoying peace of mind as they do not have to be bothered about their health and care facilities and are not willing to revert back to their old, US-kind of system. The government of Canada knows that in terms of economy they are lagging behind as compared to USA but by adopting universal health insurance they are saving a lot in terms of funds. It is essential to understand that by adopting universal health insurance, single payer universal health care cost would decrease due to diminution of administrative cost, as compared to the current US-system of health care facilities where individuals are paying around 50-100% more administrative charges, which is a remarkable loss of finances (Battista, McCabe, 1999). By adopting universal health care insurance enhanced management, monetary gains and ease can be accomplished. It is necessary for the citizens of US to have this understanding and also it is essential that government should make the people aware to dissolve their myths and wrong notions that they have created in their minds and should understand the benefits they will be provided with, for the sake and better prospects of the nation, as we never shop for health it is not a product, but people can enjoy the same kind of facilities at much lower cost. It is essential that government and NGOs must understand the benefits of health insurance and should create public awareness program through talks and discussions and

Critical analysis of five articles related to finance Essay

Critical analysis of five articles related to finance - Essay Example The inflation in Asia, corresponding to the worldwide phenomenon, is also surmounting. This is evident, in the rise of fuel prices and other infrastructural bottlenecks. In fact, the inflation in India has touched 11.91% already! Due to this, international projects and other internal economic activity, have been affected. In my opinion, inflationary tendencies are often high in the Asian continent. The continent particularly comprises Developing economies. These economies are often at the mercy of the developed world and their dominance in the international arena. Due to this, when the OPEC countries have benefitted from the rise in fuel prices, the Asian continent seems to be worst hit. However, with countries in the G-8 Summit talking about alternative sources of energy. Due to this, the inflation has lowered slightly! The second article is on Presidential candidate, Barack Obama's speech. The article talks about Obama's visit to Europe. He has asked the European countries to share the burden of the United States. This, he urged, was in an attempt to countering a threat to world peace-Terrorism. This was to urge greater military support and to garner all forces to fight against the menace. Terrorism is especially prevalent in Afghanistan and other places.