Price Setters vs. Price Takers

Price setters can be greedy when establishing a price to sell their product at. This can result in paying more for a product then consumers woulod normally want to expect to pay. This can allow for another business to come in sell that same product for a fraction of the price to bring the overall price down. A consumer will not pay the higher price if they can simply go somewhere else and get that same product for less. When price setters establsih a low price some other businesses cannot match that low price which can cause financial problems.

Price takers know that fluctuation in prices will happen and they must prepare ahead of time to compensate for any change in price that could effect business. These sudden changes in price affect their total revenue. If less product is sold because their price is not correct they must adapt to the going price at the moment and accept financial losses in hopes that it will pick back up. Determining whether or not it will be a long term loss or a short term loss will be important.

Whether or not its better to be one or the other it seems that businesses are switch hitters in which they must be both a setter and a taker. If they have certain knowledge about specific information that will give them the edge to be the Price Setter, if they want to possibly stay off the radar and build they can take the price set by competition. It almost seems the cons and pros are about equal?

Apple vs Samsung in Patent Dispute

     Recently Apple and Samsung got wrapped up in a lawsuit over intellectual property rights. Samsung was granted access to view some of Apple's unreleased and unacknowledged products with the retrun compliance of letting Apple view some of Samsung's new product line. The issue was that the products shown by Apple were unreleased and not granted permission to be known about while Samsungs products have already been advertised and promoted. Apple is even saying that Samsung "copied" Apples products.  To Apple and its legal council, this is an unfair advatage.

What does this have to do with microeconomics?

      This could start a new wave of new technology clashes creating lawsuit after lawsuit of stolen/ misused technology gains. Companies exposing valuable information about new releases that havent been reported yet. These are two giant smartphone companies with global capacity. This rise is technology will allow for expansion within companies but can hurt expansion if not done at the right time. Although I doubt early information about a product that was already anticapated to hit the market will seriously damage Apple's revenue, however, it still is their property and intellectual property wars could be on the forecast for new and old technology businesses, even more than it already is. The loss of thier competitive edge in the market is exactly what Samsung seems to be trying to do. By seeing Apple in the courtroom is a sign of fear. Do they feel that the demand for their new product will be less if customers already know what it will be?

It seems there is still some rising tension between the two competitors for the bigger grasp on the smartphone market.

Source: http://www.businessweek.com/technology

Intel chips and smartphones?

Intel has noticed that different types of chips found in smartphones may start to hurt Intel's business. Since Intels chips in PC's have slowed down due to the rise in demand of smartphones this will cause negative numbers and loss of market for Intel. They want to get their chips into the smartphone industry to compete with ARM's marketable licensing. Other competitors are able to challenge Intel but Intel has the servers. Chips for smartphones are way less expensive than chips for PC processors. Intel already has servers that help run other mobile devices this would just be their way of expanding their technology and stretching their production posibilities curve outward. If they could get into the smartphone market they could become unstoppable. According to their research smartphone shipments have increased over 80%. Intel could start looking for a way to create a low cost and energy efficient processor. Intel still powers PC processors and hopes to find a way into the smartphone market. As Intel starts to invest more into this, competition could rise causing them to have to spend more to be in the lead if that will be possible. It seems that Intel, already globally known, could expand growth more and diversify to help sustain losses in the PC market. Would Intel computer chips in smartphones be a good idea? It seems that the cost of smartphones could boost tremendously if so. This could be the opportunity window that smartphone chip company's need to boost their business. There would be little competition if they suddenly acheived that access into the market. It could speed up phone connection at the cost of convenience.

McDonalds Stock

      

      This slow and steady giant is making its way through any economic situation and making more money as it makes new trails, sort of like a lake harvestor. Even through the midst of a healthier American living environment, Mcdonalds proves to show that it is much needed and is not going anywhere anytime soon. Everytime one item on the menu is over used and forgotten they simply add another menu item to replace it. This company seems like it is the biggest fast food chains around, it is not invincible of course but it has rooted itself a fine foundation.

      McDonalds stock (MCD) is currently sitting at 80.54 per share. This share, last year to date was at about 67.25 on June 5th 2010 thats a 13.29 difference per share in one year. Even looking back further would show that it has been on the rise slowly like a ninja. It is not a huge difference in pace, but it is steadily rising, positively. This could be an interesting stock to keep your eye on. It probably will never generate millions of dollars but it can be nice to hold onto for a while and watch it grow like a Mcgarden.