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MNP2601 Assignment 5 due on 3 October 2023
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MNP2601Assignment 5
Due on 3 October 2023
Question 1
Buyers should chase after discounts and always accept such an offer to increase
profits. Select one: True False
False.
While discounts can sometimes help increase profits by attracting more customers or
encouraging larger purchases, it is not always advisable for buyers to chase after
discounts and always accept such offers. Profitability depends on various factors,
including the cost structure, pricing strategy, and target market of a business.
Accepting every discount offer can lead to reduced profit margins, especially if the
discounts are too deep or if they erode the perceived value of the product or service.
Additionally, constantly seeking discounts may not align with a long-term business
strategy or brand positioning.
It's essential for buyers to consider the overall impact of discounts on their business
and carefully evaluate each discount opportunity to determine whether it will
genuinely contribute to increasing profits or if it might have adverse effects on the
business's financial health.
Question 2
Buyers’ markets are characterised by few suppliers. Select one: True False
False.
Buyers' markets are typically characterized by an abundance of suppliers. In a
buyers' market, there are more goods or services available than there are buyers or
, demand for them. This surplus of supply gives buyers more options and bargaining
power. Suppliers may have to compete with each other to attract buyers, which can
lead to lower prices, better terms, and more favorable conditions for buyers.
Conversely, in a sellers' market, there are relatively few suppliers or a limited supply
of goods or services compared to the level of demand from buyers. In this situation,
suppliers have more power, and buyers may have to accept higher prices and less
favorable terms.
So, a buyers' market is characterized by an abundance of suppliers, not few
suppliers.
Question 3
In a monopolistic market, purchasers should accept their situation and follow what
this market from dictates. Select one: True False
False.
In a monopolistic market, there is usually only one dominant supplier or seller that
controls the entire market for a particular product or service. This lack of competition
can result in the monopolist having significant pricing power and influence over
market conditions.
However, it is not advisable for purchasers or consumers to simply accept their
situation and blindly follow what the monopolistic market dictates. In many countries,
there are laws and regulations in place to prevent or control monopolistic practices.
These regulations are designed to protect consumers and promote fair competition.
Consumers in a monopolistic market should:
1. Be aware of their rights: Consumers should be aware of their rights, including
their right to fair pricing, quality products, and reasonable terms of service.
2. Advocate for competition: Encourage competition in the market by supporting
efforts to break up or regulate monopolies, promoting antitrust policies, and
supporting alternative options.
3. Seek alternatives: While it may be challenging, consumers can explore
alternative solutions or products when possible, even if it means looking for
substitutes or complementary goods.
4. Participate in consumer advocacy: Join or support consumer advocacy
groups and organizations that work to protect consumer interests and
promote competition.
It's important for consumers to be informed, engaged, and proactive in advocating for
their rights and interests, even in monopolistic markets.
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