What are the possible reasons for firms to merge? Would a merger between publishers Penguin Random House and Simon & Schuster be good for the consumer? Explain the reasons for your answer .

Zohpius

April 5, 2023

Open book written assignment :
Students are required to answer 3 out of 5 questions demonstrating their knowledge and understanding of basic economic concepts and their real world applications.

SEMESTER 1 2022-3
INFO3006 Economics for Business
Answer 3 questions only.
The articles may be useful to help you think about the issues. They do not necessary provide an answer. Do not quote directly from these sources, only paraphrase in your own words what you think is relevant. Remember to cite your sources correctly.
Include 1 or 2 additional sources per answer.
Include a short bibliography for each answer
Important: upload your completed answers to Moodle as one file, using your student number as part of the file name eg. xxxxxxx_INFO3006_openbook. Use only Word or PDF files.

[1] Explain what is meant by the product life-cycle. Discuss the product life-cycle of Red Bull, the energy drink, commenting on its current phase in the life-cycle. Illustrate your answer with an appropriate diagram of the product life cycle .
Text1:
https://www.globenewswire.com/news-release/2022/09/14/2516176/0/en/Energy-Drinks-Global-Market-Report-2022.html

[2] What is understood by elasticity of supply? Discuss the economic reasons for the price increases and supply issues of the microchip. Illustrate your answer with an appropriate diagram .
Text 2
https://www.theguardian.com/world/2021/may/19/chips-with-everything-how-one-taiwanese-company-drives-the-world-economy

[3] What is an oligopoly market structure? Discuss the impact of the mobile phone oligopoly market on the consumer, illustrating your answer with a diagram and explanation of the kinked demand curve .
Text 3: https://blogs.lse.ac.uk/businessreview/2021/12/08/when-oligopolies-confuse-consumers-beware-the-rise-of-confusopoly/

[4] What are the ways firms grow? Discuss the growth and possible expansion of the Universal Music Group. Include also a comment on the likely impact on musicians. [500 words]
Text 4: https://theconversation.com/the-music-industry-is-booming-and-can-afford-to-give-artists-a-fairer-deal-168587
[5] What are the possible reasons for firms to merge? Would a merger between publishers Penguin Random House and Simon & Schuster be good for the consumer? Explain the reasons for your answer .
Text 5: https://theconversation.com/the-us-government-is-trying-to-stop-the-merger-of-two-of-the-worlds-biggest-publishers-but-will-it-help-authors-188364