Local Market Power Bulls Eye department store specializes in thesales of discoun

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Local Market Power Bulls Eye department store specializes in thesales of discounted clothing shoes household items etc. similarto the offerings at a regular Walmart or Target. Bulls Eye is theonly department store in Show Low and the nearest other discountretailer is Target located 49 miles away in Eagar. Bulls Eyetherefore has some market power in its local area. Despite havingsome market power Bulls Eye is currently suffering losses. Ananalyst at Bulls Eye is recommending to the manager to raiseprices so that profitability can be improved. The manager isunsure of this strategy as recent data points to increasing numbersof individuals shopping more and more. What are the pros and consof raising the prices at Bulls Eye and would that strategy beprofitable?

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