Economics Case Study

The current inflation rate (annual increase in price level) for goods sold in supermarkets (“dailies” or “everyday goods” like food etc.) is 7.9 per cent, i.e. the supermarkets have to pay 7.9 per cent higher prices upstream to the producers of the goods. On average, the price increase consists of:

  • 6 per cent points increase in energy prices because of the worldwide energy price increase,
  • 6 per cent points increase because of ongoing frictions in the supply chains as a consequence of the pandemic lock downs and distortions,
  • 5 per cent points increase because of quality / technological improvements of the goods (including trends for more biological and more regional supply),
  • 4 per cent points increase because of increasing wage costs upstream,
  • 2 per cent points decrease because of decreasing profit margins upstream.

The market for supermarkets has the following market structure:

  • NOKEG AG: 40 per cent market share,
  • UltraBuy AG: 30 per cent market share,
  • Westland Shopping AG: 15 per cent market share.
  • AKEDE AG: 10 per cent market share – small regional supermarket providers: altogether 5 per cent market share.

The supermarket companies perform the following reaction to the upstream price increase:

  • NOKEG increases all its prices by 8 per cent.
  • UltraBuy increases all its prices by 5 per cent.
  • Westland increases its prices by 7.9 per cent but offers a 2-per-cent price discount if consumers buy more than 10 items.
  • AKEDE increases all its prices by 8 per cent but offers a 2-per-cent discount for unemployed people.
  • The small regional suppliers perform various strategies.


Assignment 1 (20 points)

Discuss the pricing strategies of NOKEG, UltraBuy, Westland, and AKEDE. Are they pro- or anticompetitive?

Assignment 2 (5 points)

Westland advertises its price increase by telling the consumers that they raise prices to improve the protection of the environment and to promote regional producers. Thus, Westland consumers can shop with a clear conscience. Is this advertising strategy pro- or anticompetitive?

 Assignment 3 (5 points)

NOKEG successfully lobbies the government to grant their consumers a 5 per cent-discount for their shopping with NOKEG, called “energy payback money” (EPM). This discount is financed by the government. The official reason is to compensate for the energy price-related increase. Is this measure pro- or anticompetitive?

Assignment 4 (20 points)

Discuss the following statement: If a company acquires a monopoly position because of a breakthrough innovation, then the monopoly rents are the deserved reward for its effort.

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

We value our clients. For this reason, we ensure that each paper is written carefully as per the instructions provided by the client. Our editing team also checks all the papers to ensure that they have been completed as per the expectations.

Professional Academic Writers

Over the years, our Acme Homework has managed to secure the most qualified, reliable and experienced team of writers. The company has also ensured continued training and development of the team members to ensure that it keep up with the rising Academic Trends.

Affordable Prices

Our prices are fairly priced in such a way that ensures affordability. Additionally, you can get a free price quotation by clicking on the "Place Order" button.

On-Time delivery

We pay strict attention on deadlines. For this reason, we ensure that all papers are submitted earlier, even before the deadline indicated by the customer. For this reason, the client can go through the work and review everything.

100% Originality

At Essay Helper, all papers are plagiarism-free as they are written from scratch. We have taken strict measures to ensure that there is no similarity on all papers and that citations are included as per the standards set.

Customer Support 24/7

Our support team is readily available to provide any guidance/help on our platform at any time of the day/night. Feel free to contact us via the Chat window or support email:

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Essay Helper has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.


Essay Writing Services

At Essay Helper, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.


Admission and Business Papers

Be assured that you’ll definitely get accepted to the Master’s level program at any university once you enter all the details in the order form. We won’t leave you here; we will also help you secure a good position in your aspired workplace by creating an outstanding resume or portfolio once you place an order.


Editing and Proofreading

Our skilled editing and writing team will help you restructure you paper, paraphrase, correct grammar and replace plagiarized sections on your paper just on time. The service is geared toward eliminating any mistakes and rather enhancing better quality.


Technical papers

We have writers in almost all fields including the most technical fields. You don’t have to worry about the complexity of your paper. Simply enter as much details as possible in the place order section.