Module 1 discussion
Price Elasticity of Demand
The price elasticity of demand shows the impact of price
change on the product quantity demanded by the consumers. It is also product
specific. In other words, the prices of some products are relatively inelastic
to demand while those of others could be quite elastic to demand.
Identify a product and explain the potential price
elasticity of demand for this product. Justify your position with adequate
details based on the research and analysis.
The minimum expectation for the discussion is for the
student to post an original response in the first week and respond to, expand
upon, or challenge the post of another student (or the professor) in the second
week. You should monitor the discussions so that you can respond to any
challenges or questions you receive on the discussion board with additional
detail or support.
Module 2 discussion
Production and Cost
Using some of the concepts you learned from the module,
discuss the questions below.
In an effort to stop the migration of many of the automobile
manufacturing facilities from the Detroit area, Detroit’s City Council is
considering passing a statute that would give investment tax credits to
automobile manufacturers. This would reduce auto manufacturer’s costs of using
capital and high tech equipment in their production processes.
As a local union representative you voice your opposition to
the statute. Outline the basis of your arguments as a union representative
(Hint: consider the impact that the investment tax credit would have on the
capital/labor ratio as a result of the increase in the price of capital/price
of labor ratio).
As a representative for one of the automakers, how would you
counter the arguments of the union representative?
Module 3 discussion
Is Microsoft a Monopoly?
In a celebrated antitrust case tried during 1998, The
Department of Justice charged Microsoft Corporation with a wide range of
anti-competitive behavior. Among the charges leveled by the DOJ was the
allegation that Microsoft illegally bundled the sale of its Microsoft Explorer
Internet browser software with its basic Windows operating system. DOJ alleged
that by offering a free browser program Microsoft was able to extend its operating
system monopoly and substantially lessen competition and tend to create a
monopoly in the browser market by undercutting rival Netscape. Microsoft
retorted that it had the right to innovate and broaden the capability of its
operating system software over time. Moreover, Microsoft noted that Netscape
distributed its rival Internet browser software Netscape Navigator free to
customers, and that it was merely meeting the competition by offering its own
free browser program.
Did Microsoft’s bundling of free Internet browser software
with its Windows operating system violate U.S. antitrust laws? Is combining one
product with another a violation of the provisions of the Sherman Act? Discuss.
Did Microsoft’s bundling of Microsoft Explorer with Windows
extend its operating system’s monopoly and substantially lessen competition?
Discuss.
Did Microsoft, as a result of these practices, create a
monopoly in the browser market?
Has society benefitted from Microsoft software? Isn’t true
that Microsoft’s software has helped make personal computers more accessible
and more affordable to millions? Discuss.
You may want to watch Bill Gates’ deposition available (part
1) at https://www.youtube.com/watch?v=m_2m1qdqieE and (part 2) at
https://www.youtube.com/watch?v=TyM7RpU6cHc . You may also want to use material
at the Department of Justice Antitrust Division: United States v. Microsoft
Corporation, available at http://www.justice.gov/atr/cases/ms_index.htm
Module 4 discussion
Does the Internet Help Reduce the Asymmetric Information
Problem?
Thanks to the Internet and all kinds of online resources,
consumers can now use asymmetric information for their advantage. For instance,
buyers can research insurance rates, car prices, and restaurants and hotels
online and learn a lot about what other consumers say about these businesses.
In the past, these buyers had much less information to use when judging the
qualities of goods, services, or
companies.
At the same time, however, this advantage is a double-edged
sword, because companies profit from the Internet too, as they use online
resources to develop informational advantages over consumers. For instance,
companies can now use online research tools such as “cookies” to
determine the viewing behavior and the “clicking” habits of
consumers, and thus develop marketing campaigns to take advantage of carefully
sourced consumer habits. Discuss.
Module 4 Reflective
discussion
Summary and Reflection
Identify one substantive topic in the course that you will
use in your job in the future. Specify the topic, your job, and how you will
use this knowledge to make better decisions.
Looking back at the analytical tools you used throughout the
course, name one specific instance when you could use one of these tools to
better understand your organization, the market, or the environment in which
your employer operates.
