Market Structure and Firm Strategy.

In this market, the price elasticity of demand is inelastic. This means, demand remains relatively unchanged with changes in price. This characterizes a monopolistic competition market structure. According to Boyes and Melvin (2013), this market structure is characterized by a downward slopping demand curve. Product differentiation largely influences demand elasticity such that the greater the differentiation, the more inelastic the demand elasticity. Therefore, ventured into this highly differentiated market that makes it a mini-monopoly, hence the inelasticity of demand would see the demand for its cookbooks minimally affected by changes in pricing as it establishes itself in the market.

Success in this market would therefore be guaranteed by seeking greater differentiation of the online cookbooks. With the argument by Schotter (2009) that greater differentiation causes greater inelasticity, greater differentiation at would cause demand to remain unaffected by changes in pricing, hence consistent quantity demanded.

Don't use plagiarized sources. Get Your Custom Essay on
Market Structure and Firm Strategy.
Just from $13/Page
Order Essay

For, pricing with different types of customers and asymmetric information would be most appropriate. According to Arnold (2013), this strategy involves charging less cost per unit for those who buy more and a higher cost per unit for those buying less.

Order your essay today and save 25% with the discount code: NOVE

Order a unique copy of this paper

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
Top Academic Writers Ready to Help
with Your Research Proposal
Live Chat+1(978) 822-0999EmailWhatsApp

Order your essay today and save 20% with the discount code GREEN

paket wisata banyuwangi minyak lintah nusa penida tour bromo ijen tour loker situbondo slot gacor slot bonus 100 togel taiwan slot online bandar togel online charcoal briquettes istanaimpian rajabandot kingdomtoto Key4d lotus4d olxtoto