b)Through the history of the
2. a)Obviously, there are several factors that can add up to the reason’s McDonalds makes up 75 percent of the burger market. However, one factor that contributes to this is McDonalds engages in price discrimination. For example, let’s look at the Big Mac; without a doubt when asked “who sells Big Mac’s,” the answer replied would be McDonalds. It would be the only reply heard because no body eles makes Big Mac’s. With this being said, we can gather McDonalds is a Monopoly. By being a monopoly the business has complete control of a market that makes it possible to engage in price discrimination.
b)In conclusion, Mcdonald’s is a monopolistic company that engages in price discrimination to continue making up 75 percent of the burger market. If they did not continue to engage in price discrimination, it would result in failure to meet revenues to keep the business a float. McDonalds would not maximize in profits because they would not reach several segments of the market. Because, each segment values each item McDonalds has to offer at a different price.
3. a)As kids, my little brother and I have always been taught that “sharing is caring.” However, when it comes to Easter we were always put into a prisoner’s dilemma situation. Since I was the oldest, I was rather clever and quick in comparison to my brother. I found that if I got up early before mom and dad woke I could find where all the Easter eggs were prior to the actual Easter egg hunt. However, my brother caught on to my ways, and began waking up early too.
b)However if my brother and I could have both received the maximum number of eggs by not getting up early, we both would have cooperated. For example, if we both receive 45 eggs by not getting up early and could receive no more than 45 in any other instances, we both would have cooperated.
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