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Question 2
Compose a two-to four-paragraph email message to the chief financial officer of Apple explaining the impact the
company's actions had on consumers. Also describe how Apple's prices were set versus the way prices are determined in
a perfect competition. Your email should also offer suggestions about how Apple can charge more than its competitors
do to increase profits.
Be sure to integrate economic terminology and use proper grammar, topic sentences, transitions, an introduction and a
conclusion.
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Nov 7

Answer 1

This email explains the impact of Apple's actions on consumers and how the company sets its prices compared to perfect competition. It also offers suggestions on how Apple can charge more than its competitors to increase profits.

Step-by-step explanation:

Dear Chief Financial Officer,

I hope this email finds you well. I wanted to discuss the impact that Apple's actions have had on consumers, as well as the pricing strategies employed by the company. Apple's premium pricing strategy has allowed them to position themselves as a luxury brand, which in turn has created a sense of exclusivity and desirability among consumers. By offering high-end products at higher prices, Apple has cultivated a perception of exceptional quality and status.

When it comes to pricing in a perfect competition, the market is characterized by many small firms that produce identical products. In such an environment, prices are determined by market forces of supply and demand. However, Apple operates in an oligopolistic market, which means they have the power to set their own prices due to limited competition.

In order to increase profits further, I would suggest that Apple continues to leverage its brand value and unique features to justify premium prices. Investing in extensive research and development to introduce cutting-edge technologies and innovative designs could also help Apple maintain a competitive edge and justify higher price points. Additionally, emphasizing the exceptional customer service they provide could further differentiate Apple and justify the higher prices.

Thank you for considering my thoughts. Please let me know if you have any further questions or if there is anything else I can assist you with.

Best regards,

[Your Name]

Learn more about Apple's impact on consumers and pricing strategies