Discussion Assignment: Monopolistic Pricing
Responses Accepted until Saturday, Oct 28 by 11:59 PM
At the end of each chapter are a list of questions intended to help you review and synthesize the material covered. I will create some of the exam questions from these review questions, so to help you both solidify what you've learned in the chapter and prepare for the exams, I will create an assignment where you will answer ONE of the questions.
These assignments are part of the Reading & Writing Skills grade. Hopefully, the quality of the responses will be such that they will be a resource for review and comprehension in preparation for the exams. I will post them (without names) to Canvas before each exam.
1. What are price gouging, monopolistic pricing, and price fixing and why does each raise ethical concerns. Which do you think is most ethically problematic? Support your answer. (T-Z)
READ THE BOOK ANSWER THE QUESTION!!!!!
Instructor
Course
Date
Discussion
Price gouging refer to a situation whereby sellers raise the prices of their commodities or services to a higher level which is regarded as unfair or unreasonable. Hence, it results to exploitation of consumers. This practice raises ethical concerns such as consumers’ willingness to pay and whether or not the ability of consumers to pay should be factored in the spiked price.
Monopolistic pricing describes a situation where the seller sets the highest price possible that would enable them to maximize profits. This occurs under the assumption that the firm is a monopoly and thus does not face competition from other firms. The ethical concern in this case includes the effect that the monopoly price may have on potential rival firms and or retailers. It also raises concerns as to whether or not all consumers deserve the set price and or whether the monopoly should discriminate in favor or against some consumers.
Price fixing refers to a situation whereby rival firms make an illegal agreement not to sell goods or services below a certain price, which is the fixed price. This is achieved by controlling demand or supply in the market. This practice raises ethical concerns as to whether or not the consumers’ ability and or willingness to buy are fact...