We are here with you hands in hands to facilitate your learning & don't appreciate the idea of copying or replicating solutions. Read More>>

Looking For Something at vustudents.ning.com? Click Here to Search

www.bit.ly/vucodes

+ Link For Assignments, GDBs & Online Quizzes Solution

www.bit.ly/papersvu

+ Link For Past Papers, Solved MCQs, Short Notes & More

The Case:



In 1976, Steven jobs, then 20 years old, dropped out of college and, with a friend, developed a prototype desktop computer. With financing from an independent investor, the Apple Computer Company was born, revolutionizing the computer industry. Sales of Apple computers jumped from $3 million in 1977 to more than $1.9 billion in 1986, with profits of more than $150 million. The immense success of Apple was not lost on potential competitors, and by 1984, more than 75 companies had jumped into the market. Even IBM, which had originally chosen not to enter the market, soon put all its weight and muscle behind the development of its own version of the personal computer, the IBM PC. Similarly, Michael Dell first built and sold personal computers from his dorm room at the University of Texas in 1984 at the age of 19. Dell Computer Company was initially started from $1000. 4 years later, shares of Dell stock were sold for $8.50 and the IPO raised $30 million. Dell's name rings from the desktop to the data center. It is the world's #3rd supplier of PCs that provides a broad range of technology products for the consumer, education, enterprise, and government sectors. Dell was ranked #33 in Business Week’s Top 100 Brands, #34 on the 2008 Fortune 500 list, and was received 400 product awards in 2007. Another name in the computer industry is of Microsoft Corporation, an American multinational software corporation, founded by Bill Gates and Paul Allen, on April 4, 1975. It deals with the development, manufacturing, licensing and supporting of a wide range of computer related products and services. It is the world's largest software maker company in terms of revenues and also included among the world's most valuable companies. Microsoft announced in June 2012, that it would be entering the PC vendor market for the first time with the launch of the Microsoft Surface tablet computer. As of year 2013, it is the market dominant company in both the PC operating system and Microsoft Office. The company also produces a wide range of other Softwares for desktops and servers. Standard and Poor's and Moody's have both given AAA rating to Microsoft.



Requirement:



Carefully read the cases of world’s three major computer industries, Apple, Dell and Microsoft and point out which theory of profit perfectly fits on this case and why? What are the factors that cause these companies to earn above normal profits? Highlight those factors in the light of all theories of profit that you have studied in your managerial economics course.

+ How to Join Subject Study Groups & Get Helping Material?

+ How to become Top Reputation, Angels, Intellectual, Featured Members & Moderators?

+ VU Students Reserves The Right to Delete Your Profile, If?


See Your Saved Posts Timeline

Views: 860

.

+ http://bit.ly/vucodes (Link for Assignments, GDBs & Online Quizzes Solution)

+ http://bit.ly/papersvu (Link for Past Papers, Solved MCQs, Short Notes & More)

+ Click Here to Search (Looking For something at vustudents.ning.com?)

+ Click Here To Join (Our facebook study Group)

Replies to This Discussion

 Fawad Akram  Kindly GDB ka Questions tu share karo ..or last date b  mention karo...

ok. I will take care next time. Thanks

Please Discuss here about this GDB.Thanks

Our main purpose here discussion not just Solution

We are here with you hands in hands to facilitate your learning and do not appreciate the idea of copying or replicating solutions.

What is theory of profit in managerial economics?

risk bearing theory 
frictional theory 
monopoly 
innovation 
managerial effeciency

we have to chose only one from above , and define why we are choosing

No , you can choose more than one.

Microsoft's earning highest profit not only from innovation theory rather monopoly as well.So Microsoft’s profit position can be party explained by all four theories...and same goes with Dell and Apple..but what you have to do...justify each

THEORIES OF PROFIT:

 

• Risk-Bearing Theories of Profit

• Frictional Theory of Profit

• Monopoly Theory of Profit

• Innovation Theory of Profit

• Managerial Efficiency Theory of Profit

In economics, a firm is a monopoly when, because of the lack of any viable competition, it is able to become the sole producer of the industry's product.In a normal competitive situation, the price the firm gets for its product is exactly the same as the Marginal cost of producing the product.Because the monopoly firm does not have to worry about losing customers to competitors, it can set a price that is significantly higher than Marginal (Economic) cost of producing (the last unit of) the product.Therefore, a monopoly Situation usually allows the firm to set a monopoly price which is higher than the price that would be found in a more competitive industry.and to generate an economic profit over and above the normal profit that is typically found in a perfectly competitive industry.The economic profit obtained by a monopoly firm is referred to as monopoly profit. The existence of a monopoly, and therefore the existence of a monopoly price and monopoly profit, depend on the existence of barriers to entry: these stop other firms from entering into the industry and sapping away profits.

Waqas Chaudhry gud keep it up & thanks for sharing 

Note for All Members: You don’t need to go any other site for this assignment/GDB/Online Quiz solution, Because All discussed data of our members in this discussion are going from here to other sites. You can judge this at other sites yourself. So don’t waste your precious time with different links.

what are the factors that cause to earn above normal profits

 

Differentiation . .:)
Economies of Scale......but usually we didn't discuss this concept in techworld.

Factors:

-  Sole ownership of a scarce resource

-  IP rights (Intellectual property)

-  Patents Ownership, barring others to create and market smiler products

- Non-Compatibility

- Mergers OR overtaking small competitors

 (We have an excellent example of Facebook, Microsoft tried to purchase it offering $15 Billion , while it was just getting noticed, but FB refused and continued at their own. Now can you imagine their Profits???)

Factors:

-  Sole ownership of a scarce resource

-  IP rights (Intellectual property)

-  Patents Ownership, barring others to create and market smiler products

- Non-Compatibility

- Mergers OR overtaking small competitors

 (We have an excellent example of Facebook, Microsoft tried to purchase it offering $15 Billion , while it was just getting noticed, but FB refused and continued at their own. Now can you imagine their Profits???)

RSS

Latest Activity

+ "αяsαℓ " Ќąƶµяɨ •" posted a blog post
8 seconds ago
+ ! ! (MmM) MuStAfA MaDaNi ! updated their profile
8 minutes ago
+ Iuuoɔǝut+ replied to 彡JK彡 ❤️'s discussion ............ A public service message...........
15 minutes ago
+ "αяsαℓ " Ќąƶµяɨ •" left a comment for asim ur rehman
31 minutes ago
+ "αяsαℓ " Ќąƶµяɨ •" left a comment for MALIK G
32 minutes ago
+ "αяsαℓ " Ќąƶµяɨ •" left a comment for IBS
32 minutes ago
+ Iuuoɔǝut+ posted discussions
56 minutes ago
+ Iuuoɔǝut+ replied to + Iuuoɔǝut+'s discussion How Can You Get Secured of Being Banned On Ning
57 minutes ago
Asmat replied to + M.Tariq Malik's discussion VU Students Reserves The Right to Delete Any Profile On the Site
1 hour ago
+ Adeeena replied to + Adeeena's discussion Vitamins For Skin You Should Never Miss: p
1 hour ago
+ Adeeena replied to + Adeeena's discussion Vitamins For Skin You Should Never Miss: p
1 hour ago
Whispering Soul liked Whispering Soul's discussion شاہی جوڑے کی رکشہ میں آمد
1 hour ago
Whispering Soul posted a discussion
1 hour ago
+ "αяsαℓ " Ќąƶµяɨ •" replied to 彡JK彡 ❤️'s discussion ............ A public service message...........
1 hour ago
+ "αяsαℓ " Ќąƶµяɨ •" liked 彡JK彡 ❤️'s discussion ............ A public service message...........
1 hour ago
+ "αяsαℓ " Ќąƶµяɨ •" left a comment for waseem khan
1 hour ago
+ "αяsαℓ " Ќąƶµяɨ •" left a comment for + ! Agha RoShaaan Khan
1 hour ago
+ "αяsαℓ " Ќąƶµяɨ •" left a comment for Ƨ.ℳƧℂƧ
1 hour ago
+ "αяsαℓ " Ќąƶµяɨ •" left a comment for stylo
1 hour ago

© 2019   Created by + M.Tariq Malik.   Powered by

Promote Us  |  Report an Issue  |  Privacy Policy  |  Terms of Service