Economic principles related to price, output, profit and strategies required for maximizing profit.
Jackson Publishing, located in Toledo, Ohio, publishes a sports newsletter that focuses on the city's minor league baseball team, the Mud Hens. Until recently, Jackson Publishing enjoyed a monopoly with Mud Hens fans. A few months ago, however, Jackson publishing encountered competition. Mud-Sports began to produce a newsletter and offer a Web site also intended for Mud Hens fans.
Phil Strang, the editor-in-chief of Jackson Publishing, has approached Economic Consultants for advice about how to increase its readership and maximize its profits. Prepare a report for Jackson publishing that addresses the following issues:
1. In what type of competitive market does Jackson publishing now operate?
2. Elucidate what economic principles with regard to price, output, and economic profit does Jackson Publishing need to consider?
3. What strategies can Jackson publishing implement to increase readership and maximize profit?