Economics Case Study Example | Topics and Well Written Essays - 750 words

Economics - Case Study ExampleFor example, interchange Roundup explain Monsantos ability to develop GM herbicide-tolerant crops. A maturity of crops industry is a long-familiar fact and there is an evident growth of R&D costs, stricter legislation and more approval and accompaniment from the government. Moreover, the pricing indemnity of Monsanto can be explained by the companys ability to develop Roundup in the post-patent period. Therefore, a fostering of GM products and success of Monsanto can be illustrated in the following way Roundup is creditworthy for provision of plants with required herbicides and there is a growth of plants productivity providing a more favorable purlieu to the crops.As far as we can see, there is a clear strategy of Monsanto developed at different levels (social, economical and technical). Innovations in the company led to an evident increase of prices. Unfortunately, Monsanto did not have much(prenominal) kind of privileges in the earlier years. In 70s OPEC restricted nations in the amount of oil coming to America. equipment casualty per barrel of crude oil was very high. Due to the fact that Monsanto needed petroleum for the major sidetrack of its developments, and price increase could not be easily passed on to consumers.Monsanto got a trend of 90s and made an accent on clear environment. At that time it was a great advantage of the company. Moreover, Monsanto became a monopolist convey to patent policies of America. Price reduction of Monsanto between 1995 and 2000 is the result of patent law in America, tolerant policy to companies developing eco programs and products.Therefore, price elasticity of Monsanto can be correlated with the best chosen pricing conclusiveness strategy in slick a price is low, more units of goods are sold in case a price is high, fewer units of goods are sold. It is a well-developed mechanism of pricing strategy and Monsanto gained huge remuneration decreasing their prices for