Hi:

I'm sure exactly what "price gouching" means, but if you're implying this will 
lower the prices, that isn't necessarily the case.  I only have a basic grasp 
of economics but it's my understanding that the fewer firms that exist in a 
market (an oligopoly) selling slightly differentiated products (bn and pac mate 
are both note-takers but are marketed toward different people), each firm has 
the ability to RAISE prices, not lower them, because as a consumer, you have 
less of a choice as to whom you wish to purchase your product.

Whereas, if you have many different firms (monpolistically competitive), one 
particular company could not raise its prices exorbitantly because as a 
consumer you would simply switch companies.

Can we tell I have an econ midterm in three days?

Laura

>------ original message ------
>from: "Victory Associates LTD, Inc." <[EMAIL PROTECTED]
>Subject: Re: [Braillenote] Pulse is reviving plans to float: mergeswithVisuaide

>Hey Mary, it's the END OF COMPETITION!!  More price gouching, perhaps??
>Time will tell though.  I wonder which company is next in this merger
>business??  GW Micro and may be Dolphin are the ONLY INDEPENDENT ONES left,
><hmmmmm>!!

>Sincerely,
>Olusegun




Reply via email to