大锦囊001think.com（品牌营销第一资料库）海量精品策划资料!QQ:1242116556MicroeconomicsAnalysisBasicmicroeconomicsprovidestheanalyticalbasisforunderstandingmanycases.Someoftheissuestoaddressare:TypeofmarketFindoutabouttypeofmarket.Whatis4or8firmconcentrationratio?Whatisminimumefficiencyscale?Ismarket:1)PerfectCompetitionWithoutanyproductdifferentiation,afirmwillbeapricetaker.Acompetitivefirm’sdemandcurveishorizontalanditpriceelasticityofdemandisinfinite.Whenthefirm’sdemandcurveishorizontal,eachadditionalunititsellsaddssalesrevenueequaltothemarketprice.MarginalRevenue=MarginalCost=Price2)MonopolyAnindustrydominatedbyonefirmisamonopoly.Thisfirmhasasignificantcontroloverprices.Amonopolisticoutcomemaximizesindustryprofits.AmonopolistsetspricesothatMR=MC=Price*[1+(1/Ed)]whereEdistheelasticityofdemand.Ifdemandishighlyelastic,thereislittleadvantageofhavingmonopolypowersinceMR=MC=Price(sameasPerfectCompetition).Evenifdemandisinelastic,amonopolisticfirmmustbecarefulinsettingprice.Ifpriceissettoohighandbarrierstoentryarenot,themarketmayattractnewentrants.3)OligopolyAnoligopolyisseeninindustriesthathavehighbarrierstoentryandaredominatedbyafewfirms.Firmshavesomecontroloverpricesandallplayershavetheincentivetomaintainhighprices,asanypricecutwillbematchedbycompetitorsandreduceprofits.Gametheoreticanalyseshelpunderstandindustryoutcomes.Elasticityofdemand1)Howelasticisdemandwithrespecttochangeinprices?2)Considerlong-termandshort-termeffectsonelasticityofdemand.Considerpricingissueslike:1)Thinkaboutwhatpricethemarketwillbear.Alsoidentifysubstitutioneffects.Keepinmindthatdemandmaybeinelasticintheshortrun,butistypicallymoreelasticinthelongrun.2)Howdocompetitorsreacttopricechange?3)Considermethodstoenhanceandsupportpricediscrimination.4)Ispricetoolow(mightcompromisethereputationofthebrand)orisittoohigh(mighteffectmarketshare)?Someimportantconceptsformicroeconomicsanalysisare:1)Pricediscrimination:considerhowthefirmcanenhanceandsupportpricediscrimination(remember,pricediscriminationincreasesprofits).2)Doublemarginalization:considerhowtotalprofitsinaverticalchaincanbemaximizedbyintegratingwithyoursupplier.Thisispossiblewhenasupplier’spricingdecisionleadstoinefficienciesinafirm’sproductiondecisions.3)Transferprice:thinkofanyinefficiencycausedbyartificialtransferpricingwithinafirm.
