Question

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.

Answer 1

This message concerns the unlawful e-book Price-fixing conspiracy that Apple was involved in. I understand that, as producers, your aim is to maximize profit, and this Price-fixing conspiracy was one way to achieve that. However, Apple’s actions affected consumers. We paid higher prices for many e-books titles than we would have if Apple were competing under a perfect competition.

Price-fixing and collusion will get you more profits, but consumers bear the burden of hefty prices. I understand that it is necessary in this highly competitive world to make profits to stay in the market. However, there are other, more acceptable ways to do so.

Apple is a big brand; every new feature impresses consumers. You can introduce more features to attract more consumers. Product differentiation and extensive advertising will surely help you achieve profits without extensively affecting the consumer’s wallet.

Your company is one of the largest companies in the industry. Every action you take influences the industry and your competitors. Actions such as product differentiation and advertising will induce healthy competition in the market and reduce the burden on consumers.

Step-by-step explanation:

Answer 2

As we have seen over the years, the need for more and more technological equipment has increased the sector to which Apple is inserted. This has also increased competition and the need for new products, which Apple has efficiently supplied, since it is known for being an innovative company and that it is always in line with the needs of the consumer, which explains its success through of the years.

We should also mention Apple's ability to establish perfect competition within the economic market in this sector. This can be seen by the fact that Apple's agility in production and its ability to put products on the market so quickly, that makes competing companies increase their production, so that they can compete at the same level as Apple, generating thus, a large number of sellers, for a large number of buyers.

This, however, has created challenges for Apple, which must look for ways to increase its profits amid such aggressive competition. For this challenge to be overcome, Apple must invest in research, to know what the consumer wants in an electronic device, in addition, it must invest in quality service and consumer support, which will become a differential and attract buyers increasingly faithful to the company's products.