Discussion #3
Please view the below video link and share your thoughts on the economic concepts that you believe are applicable. In your response, provide a rationale on whether or not a firm has to possess market power in order to raise prices.
Book Reference: Brickley, J.A., Smith, C.W., & Zimmerman, J.L (2009). Managerial economics and organizational architecture (6th ed.). New York: McGraw-Hill/Irwin
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Video Discussion
There are several economic concepts found in the video, which business managers can use to manage their businesses. In the video JJ Ramberg and Bob Prosen discuss several measures, which enterprises can use to meet the needs and expectations of their customers, thereby being competitive. One of the economic phenomenon revealed in the discussion is price elasticity, which measures how the demand of a commodity or service changes due to price increases.
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