RM Moment #6:
RM is an
economic anomaly (or exception), because many businesses with inflexible
production and high financial leverage (aviation, hotels, rent-a-car, etc...)
even operating in an environment of strong competition (perfect competition),
the prices/marginal revenue practiced are far or very far from being equal to
their marginal cost, thus contradicting the economic principles of perfect or
quasi-perfect competition. In this sense, the economic paradox that exists in
companies capable of applying RM is that they tend to operate in market
structures of strong competition (perfect or quasi-perfect competition), but
applying, in practice, many economic principles typical of monopolies (e.g.
price differentiation) and/or oligopolies (e.g. product differentiation).
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