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
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Industries are classified into four different market structures. They are perfect competition‚ monopolistic competition‚ oligopoly and monopoly. Each of these has different characteristics regarding the number of firms involved to the type of product they make. Different methods and restrictions are used to maximize profits in all markets of the economy. Brand management and advertising are two tools that firms used to differentiate their products. The main objective of brand management is
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Case Study: Burger King Beefs Up By Janet Mosha Burger King is the world’s largest chain of flame-broiled fast food restaurants. Its core competency is its flame-broiled burgers; whereas other fast food hamburger joints serve fried burgers or no burgers at all‚ Burger King offers the unique flame-broiled burgers with any options that a customer might like‚ consumers have the benefit of having a burger they cannot find elsewhere. Initially Burger King only sold burgers‚ fries‚ shakes‚ and sodas;
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the firm puts up its price‚ will it lose (a) all its sales (a horizontal demand curve)‚ or (b) a large proportion of its sales (a relatively elastic demand curve)‚ or (c) just a small proportion of its sales (a inelastic demand curve)? • The market structure under which a firm operates will determine its behavior. Firms under perfect competition will behave quite differently from firms which are monopolists‚ which will behave differently again from firms under oligopoly or monopolistic competition
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Market structure : there are a number of different buyers and sellers in the marketplace. This means that we have competition in the market‚ which allows price to change in response to changes in supply and demand. Furthermore‚ for almost every product there are substitutes‚ so if one product becomes too expensive‚ a buyer can choose a cheaper substitute instead. In a market with many buyers and sellers‚ both the consumer and the supplier have equal ability to influence price. In some industries
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Burger King Beefs Up Global Operations Gregory Peavy Columbia Southern University Burger King is the world ’s largest flame- broiled fast food restaurant chain. The first Burger King was called” Insta Burger King” opened in 1954 in a Miami‚ Florida suburb. In 2009 burger king operated about 12‚000 restaurants in all 50 states and in 74 countries and U. S. territories worldwide through a combination of company owned and franchised operations
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travel tickets or any other goods or services‚ many people deem it beneficial to know the markets that they take part in as the consumer. In order to begin understanding the importance of market structures this paper will first define the term and concepts concerning market structures. Next‚ this paper will analyze a simulation given by the University of Phoenix as a learning tool to help understand market structures and lightly covering what the advantages and limitations of supply and demand identified
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Market structures and pricing Revenues Consumers * Inverse demand curve gives willingness-to-pay * Benefit consumer(s) derive(s) from additional good; * Area under inverse demand curve measures total willingness-to-pay‚ total benefit or total surplus. * Maximum price I can charge as producer determined by inverse demand function * Marginal revenues; revenue of next unit I sell Strategies * Profit maximization * Marginal profits equal to 0 (MR=MC) *
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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
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MARKET STRUCTURES IN THE PHILIPPINES “A term paper submitted as a partial fulfillment of the requirements in Microeconomics” Submitted by : Jake Kevin P Borja BSBM – IIB Submitted to: Ms. Azelle Agdon Date of submision : October 10‚ 2012 I. Introduction Any study of economics has to begin with an understanding of the basic market structure of the country. An economy is made up of producers of goods and services‚ of
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