As mentioned earlier‚ firms’ profit maximizing output decisions take into account the market structure under which they are operating. There are four kinds of market organizations: perfect competition‚ monopolistic competition‚ oligopoly‚ and monopoly. Perfect Competition Perfect competition describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product. For a market structure to be deemed “Perfectly Competitive”‚ it needs
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discussing the motivation and methods for creating the colour bar in the South African labour market during the first half of the 20th century. 3. “The Labour Relations Act of 1995 makes it possible for Employers and Trade Unions to operate as bilateral monopolies” Discuss. 4. Write an essay in which you explore the different arguments that have been put forward for South Africa’s high rate of unemployment. 5. Why should South Africa regard the unemployment problem as its most important social
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THE REASONS WHY COUNTRIES TRADE: THE BENEFITS AND DISADVANTAGES TRADE RELATIONSHIP BETWEEN KENYA AND CHINA: REASONS WHY THE TWO COUNTRIES TRADE Table of content 1.0 International trade 1.1 Reasons why countries trade 1.2 Benefits of trade 1.3 Disadvantages of trade 2.0 Trade relations between Kenya and China 2.1 Volume of trade between kenya and 2.2Reasons for the Trade relations between Kenya and China 3.0 References 1.0 International Trade International trade is exchange of capital‚ goods‚ and
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Social regulation aimed at improving health and safety. Economic regulation of a natural monopoly and antitrust policy used to prevent a monopoly and foster competition. a. Antitrust policy b. Social regulation c. Economic Regulation d. Social regulation 10. (Regulating Natural Monopolies) The following graph represents a natural monopoly. a. Why is this firm considered a natural monopoly? b. If the firm is unregulated‚ what price and output would maximize its profit? What
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that can interbreed and produce fertile offspring B.The number of individuals of the same species in a given area C.A group of species living and interacting with each other in a given area D.The total number of individuals in a given area 4.The graph below represents a sigmoid (S-shaped) population growth curve. Three sections of the curve are indicated (1‚ 2 and 3). In which of the sections is natality plus immigration greater than mortality plus emigration? A.1 only B.2 only C.1 and 2 only
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included in the contract. (3) Performance and discharge- once parties fulfill their duties under the contract‚ those duties are discharged. (4) Remedies- a breach of contract may result in money being awarded to the injured party by the court. Bilateral Contract A contract in which both parties make a promise. Unilateral Contract One party makes a promise that the other party can only except by doing something Express Contract Parties intend to contract and agree on explicit terms. Implied
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OUM TOPIC 8: MONOPOLY‚ MONOPOLISTIC AND OLIGOPOLY TOPIC 8: MONOPOLY‚ MONOPOLISTIC AND OLIGOPOLY Introduction Apart from perfect market competition‚ we will look at three other types of market structure‚ namely monopoly‚ monopolistic and oligopoly in this topic. We will also compare between the characteristics of the market structure. In this topic‚ the emphasis will be on monopoly‚ while the other two structures will be discussed briefly. Learning Objectives At the end of this topic
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businesses stay alive. If most firms are making abnormal profits‚ this encourages the entry of new firms into the industry‚ which if it happens will cause an outward shift in market supply forcing down the ruling market price‚ as shown on the left graph. This increase in supply will eventually reduce the market price until price = long run average cost. At this point‚ each firm in the industry is making normal profit. Here firms operate at the minimum average total cost as they are producing the
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resources to satisfy human wants. In microeconomics‚ we study how these scarce resources are allocated within the market system. Topics include: division of labor‚ comparative advantage‚ supply and demand analysis‚ price ceilings/floors‚ taxes‚ monopoly‚ price discrimination‚ cartels‚ wages‚ pollution and failures of the market system. Mathematical skills beyond simple algebra and graphical analysis are not required in this course. This course meets the diversification requirement (DS) of Gen
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2012 Pearson Education‚ Inc. All rights reserved. Three Models of Market Competition • Perfect competition – A free market in which no buyer or seller has the power to significantly affect the prices at which goods are being exchanged. • Pure monopoly – A market in which a single firm is the only seller in the market and which new sellers are barred from entering. • Oligopoly – A market shared by a relatively small number of large firms that together can exercise some influence on prices. Copyright
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