ALTERNATIVE MARKET STRUCTURES It is traditional to divide industries to categories according to the degree of competition that exists between the firms within the industry. There are four such categories. At one extreme is perfect competition‚ where there are many firms competing. Each firm is so small relative to the whole industry that it has no market power to influence price. It is a price taker. At the other extreme is monopoly‚ where there is just one firm in the industry‚ and hence no competition
Premium Economics Microeconomics Perfect competition
there is a threat of bird flu which is a deadly disease spreading among chickens‚ the demand for chickens will decrease and the demand curve will shift to the left as shown in the figure 1. As a result‚ the equilibrium market price will decrease from P1 to P2 and the equilibrium market quantity will decrease from Q1 to Q2 in the short run. Q.5.1 b) Figure 2: As the poultry in country X is perfectly competitive with the supply of chicken coming from both domestic firms and farms located
Premium Economics Supply and demand Microeconomics
In a oligopolic market structure‚ there are a few interdependent firms that change their prices according to their competitors. Ex: If Coca Cola changes their price‚ Pepsi is also likely to. Characteristics: Few interdependent firms A few barriers to entry Products are similar‚ but firms try to differentiate them There is branding and advertising Imperfect knowledge (where customers don’t know the best price or availability) To compete or collaborate? Since firms are interdependent‚ they
Premium Monopoly Oligopoly Competition
Oligopoly In a oligopoly market structure‚ there are a few interdependent firms that change their prices according to their competitors. Ex: If Coca Cola changes their price‚ Pepsi is also likely to. Characteristics: * Few interdependent firms * A few barriers to entry * Products are similar‚ but firms try to differentiate them * There is branding and advertising * Imperfect knowledge (where customers don’t know the best price or availability) Revenue Curves Total Revenue
Premium Monopoly Economics Competition
export in 1993‚ with a modest quantity & value‚ GFC is now exporting its products to the tune of US$ 12 million annually to more than 30 countries in the World. GFC fans became an instant success due to their quality and durability in the entire markets share these were introduced including countries in Asia‚ Middle East‚ and Africa & Europe. GFC became the first electric fan manufacturing company to win Export Trophy Award in Pakistan. Now‚ GFC has won its 12th Export Trophy Award. GFC also
Premium Manufacturing Electricity Brand
optimize price. It is an organization with a very desirable position in the world; very few companies can experience the opportunity to determine their own prices without loosing significantly market share. OPEC is considered a Monopolistic-Cartel type of organization. Firm’s demand curve This type of structure has the advantage that while increasing oil prices may shift the demand curve. The model allows backstop technology and tariffs on oil imports; therefore‚ the imposition of tariffs to importing
Free OPEC 1973 oil crisis Petroleum
Introduction By the late- 1990s fast-food chain McDonalds had enjoyed 40 years of exceptional performance. McDonald’s brand mission is to be a customers’ favorite place and way to eat. McDonald’s worldwide operations are aligned around a global strategy called the Plan to Win‚ which center on an exceptional customer experience – People‚ Products‚ Place‚ Price and Promotion. They are committed to continuously improving theirs operations and enhancing customers’ experience. McDonalds place the customer
Premium European Union
“In the first quarter of 2010‚ the market for private homes in Singapore saw a record breaking prices and transaction volumes‚ prompting calls for government intervention to cool the market.” Using economic analysis‚ explain the reasons for the “record breaking prices and transaction volumes” for private homes in Singapore. Private homes in Singapore seeing a record breaking prices and transaction volumes is due to the actions of both the consumers and the producers‚ which will cause a shift in
Premium Supply and demand
profit. * Management decision making application‚ include pricing and planning. Costs of alternative methods of production are useful in planning the most efficient method of production. Costs of alternative options for a product suggested by market research are necessary to determine whether it is profitable. Inventories – manufacturing and non - manufacturing * Manufacturing and non - manufacturing business entities engage in many of the same selling and administrative activities such
Premium Inventory Manufacturing
Maximizing Profits in Market Structures The subject matter of competitive markets can be complex with many extraneous details that can make all the difference between being a perfect competition‚ monopolistic competition‚ a monopoly‚ or an oligopoly. Each of these types of markets have specific characteristics and economic market effects that include entry barriers‚ price and output determination to produce the most profits for any given business or company. Even though these differences may
Free Economics Perfect competition Monopoly