Without using examples from the textbook or lecture slides, answer the following

Question

Without using examples from the textbook or lecture slides, answer the following questions:

1) Give an example of a monopoly.

         a) State which barrier to entry it utilizes.

         b) Have you ever purchased this good or used this service? Explain.

2) Give an example of a company that uses price discrimination.

         a) State which type of price discrimination it utilizes.

         b) Have you ever purchased their good or used their service? If so, how were you impacted by their price discrimination?

Explanation / Answer

1) Example of Monopoly

Microsoft is an example of monopoly. though other operating systems do exist it has surpassed all it s competitors ,it lacks a viable close substitute.

a) Microsoft uses are strong brand identity and customer loyalty.

b) I have purchased the products of Microsoft, the operating system and MS office. The brand is so powerful and the services that are provided suits customer tastes and demand. Even though I have used LINUX and open office the look and feel , comfort levels are way low compared to microsoft.

2) Example of company using Price discrimination

Apple is one such example of company that uses price discrimination in the form of Apple education pricing.

A) It is third degree price discrimantion; where certain sections or geographies are treated differently to attract them or for other reasons.

B) Yes , I have purchased Apple Mac book, as student I availed 10 % discount under Apple education pricing program. I was benefitted from this price discrimination. I got attracted so do my classmates and friends. The company could sell many product in out college.

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