I have chosen Wal-Mart as the company to use in my paper.
Question 1) Is this company operating in a perfectly competitive market? Why or why not?
Question 2) If the owner of the company asked you to assess whether or not they were using the optimal amount of an input (given a set price for that input), what economic criterion would you use in your analysis?
Question 3) If you were asked to assess the economic profitability of this company, what economic tools would you use in your analysis?
Question 4) What is the elasticity of demand for the product (or one of the products) that is produced by the company? Given this elasticity of demand, how should the company price their product in this market? Give justification for your answer.
Would it be strategic pricing to go along with the competition to increase sales?