Strayer ECO550 Week 5 Discussion Question

ECO 550 Week 5 Discussion Question
ECO 550 Week 5
Discussion Question
“Applications of Cost
Theory” Please respond to the following:
From the scenario,
determine the appropriate type of market structure for the situation in
question. Cite at least four (4) defining characteristics that have helped you
reach this decision regarding the appropriateness of the chosen structure.
Recommend two (2) kinds of pricing and output strategies that Katrina’s Candies
should use to reach the goal of profit maximization. Suggest key modifications
that Katrina’s Candies should make in order to maintain a competitive advantage
when new entrants enter the market. Provide a rationale for your suggestions.
Imagine that you are a
manager of a chemical company. An accident has occurred in which chemicals
leaked into the ground water nearby. The community is unaware of the accident.
Compare the primary costs involved in cleaning up the water immediately (and
thus confessing) versus hiding your culpability now and possibly paying more in
the future. Predict the impact on profitability in both situations. Justify
your response.