Answer ONE of the following (be thorough… a good answer will be at least a half

Question

Answer ONE of the following (be thorough… a good answer will be at least a half page):

A) Disney World has doubled their ticket prices at their amusement parks over the last 10 years, which of the economic market models we covered explains this behavior? Be sure to take into account that competitor parks are nearby. Be sure to detail how this model works and why it fits the Disney World situation.

B) Your uncle, who spends most of his time listening to talk radio and watching Fox News, argues that to lower fuel prices we just need to reduce regulation and allow oil drilling on federal lands. Either come to your uncle’s defense OR argue against him using the microeconomic models we examined… lest your uncle sound like an idiot for not being able to explain how he justifies his position.

Explanation / Answer

A) Disney World is the theme park that tops the amusement park market. The market in which Disney world compete with others amusement parks is a kind of oligopolistic market. Oligopolistic market is a kind of economic market model where they exist few numbers of sellers and large numbers of powers. There exist leaders and followers as well. And entry and exit is difficult and sometimes next to impossible.

Now lets consider Amusement park market. In such market ther are only few players that are copmeteing with each other at glbal market. Disney being the leader and geatest share holder of customer base, others are smallplayers. Entry and exit both require huge cost thus limiting the number of sellers.

Disney as being popular, greatest share holder ,through various marketing strategies, has made a strong brand identity of itself. This brand identity that make customers rank Disney on the top of all other players has came in shape not in once and all but it has been created, moulded and getting strong days by days and years by years.

Such kind of brand identity and renownability has made Disney to increase its price bit a bit in years and if we see collectively we will find that it has doubled its price in 10 years.

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