ECONOMICS 1
Module2 Response MBA540
ResponseI on Discussion I
I believe Burkettgave essential factors that entrepreneurs should consider whiledetermining prices of their products. I have witnessed businessesthrive or collapse primarily due to pricing in my community. Manyindividuals have a tendency to compare prices among firms beforepurchasing products and services. I enjoyed the statement thatmanagers should been keen to consider factors such as income levelsof their target consumers and price of alternative products. Thestatement is in consistence with the hard economic times in U.S. Withmany citizens having low-income levels, they source for cheapproducts in order to be able to pay most of their bills. Moreover,the example of Cisco makes Burkett work credible and interesting. Theexample provides and an insight why some firms come to terminationafter increasing their inventory price without considering theeconomy.
Response2 On Discussion 2
The discussion of Fleischman is based on solid facts making itinteresting to read. The essay is captivating as it anchored onbasics of economics that involve overhead cost, fixed costs andvariable costs. Fleischman was keen to mention all factors toconsider before increasing price of products. As I have learned fromvarious young entrepreneurs in my local area, fast moving goods canbe sold a relatively low price and still one is able to make profit.Another fascinating factor about Fleischman work is the statementthat firms should consider the important of a product to consumersbefore increasing its price. He gave an interesting example of AppleInc. products, which have been able to dominate U.S market despitetheir high price. Clients crave for products that are durable,innovative and with interesting features, which Apple Inc. has beenable to meet.
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