Business Economics

• This is an MBA course called “Business Economics” and I want the best high quality for this paper as it worth 100 % of the marks in this course.

• The assignment consist of 4 questions. The answers for each question should be 412 words (So total is 1650 words) Excluding References, graphs, and tables as they are not included in the word count.

• You should draw the graphs/diagrams by yourself using any software like the example paper that I have attached.

• You can use more than one graph in the same question as you need to explain the answer very well.

• References: Minimum Total of 12 references (Harvard Referencing Style). For each question there should be at least 3 references.

• Please don’t waste the word count on unnecessary things or unimportant information. No need for introductions, just answer the questions directly.

• I have uploaded an example paper on a different topic from last year to have an idea
• I have uploaded the class slides to have an idea about the Business Economics course

The 4 Questions:-

• Question 1 (412 words and minimum 3 references):- Luxottica produces about 70% of all branded eyewear. Explain using the appropriate diagrams how Luxottica can affect the quantity and price of glasses if it operates as a single-price monopoly, producing one homogenous good. How would the market price and quantity change if this was a perfectly competitive market?

• Discussion on Monopoly vs Perfect Competition
• Present relevant diagrams

• Question 2 (412 words and minimum 3 references):- Explain Luxottica’s growth strategy through vertical and horizontal integration, providing some examples. What are the potential pros and cons associated with these two types of growth?

• Do some research to find examples of Luxottica’s horizontal and vertical growth (add references in bibliography)
• Discussion on pros/cons for the firm and for the society

• Question 3 (412 words and minimum 3 references):- Using the appropriate graph, explain how the entrance of online retailers will affect the market equilibrium for glasses and Luxottica’s profits and market share.

• Market does not have strong barriers to entry, so competition eventually increases with online retailers
• Use appropriate diagrams to illustrate what happens to Luxottica in the long run (assume initially that it is the only firm in the market)

• Question 4 (412 words and minimum 3 references):- Two primary choices for vision correction include eye contact lenses and eyeglasses. Using economic arguments explain whether you expect price elasticity of demand to differ between eye contact lenses and eyeglasses. What are the possible pricing implications for the firm?

• Focus on price elasticity of demand (ped) and reason why you expect ped to differ or not between eye contact lenses and eyeglasses (using relevant economic arguments)
• Then discuss relationship between ped and sales, you can use relevant diagrams to illustrate your point