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    3 Concentration Ratios

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    Calculate the 3 firm concentration ratio of this market. 3 firm concentration ratio = __________________________________________________________ This means: A highly concentrated market is a market which is dominated by a small number of firms (oligopoly) We say a market becomes more highly concentrated as fewer firms dominate a larger share of the market The Impact of Increased Concentration You need to be familiar with impact of increased market concentration on a market‚ and that this can be

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    Unit 41 Business - P5

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    one company with little competition. At the other end of the spectrum you have perfect competition‚ where the market is made up of about 100 small companies who would own about 1% of the market each. Towards the middle of the spectrum you have the oligopoly structure where the market is of about 4-10 companies who each control a big chunk each. Perfect competition describes how a set of companies aren’t big enough to control a big chunk of the economic market. There are 4 market characteristics of

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    One possible application of Game Theory is in advertising. Advertising involves the promotion of products so as to show the product to a greater number of people. The goal of advertising is to make more people aware of a company’s product so t hat more people would avail of this product or service‚ and this would mean more revenues for the company. One way that American Eagle Outfitters can approach this goal is to expand the current market of consumers. This will need directing promotional activities

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    The Monopoly

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    The Monopoly Ahmed El-Zeini‚ chairman of the division of building materials in the Chamber of Commerce in Egypt‚ says: "Some analysts believe that the cement industry has suffered too much from the monopoly of certain local manufacturers‚ not to mention the manipulation of prices. The Egyptian Authority for the protection of competition and prevention of monopolistic practices has begun to study the cost of cement production in the local plants‚ to make sure no monopolistic practices are being carried

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    Economies of Scale

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    Tucker (2009‚178) believes that the most significant barrier to entry in an oligopoly is economies of scale. Economies of scale generally refer to the cost advantages that will be associated with large organizations. Margaretta (2012‚26) suggests that companies pursue economies of scale in the belief that this will be decisive in determining a competitive advantage and increased profitability. Woolworths enjoys significant economies of scale  in relation to its competitors. In the supermarket industry

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    Tobacco Oligopoly

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    of an oligopoly market because it is mostly run by a few large firms such as Philip Morris USA‚ Commonwealth Inc‚ Lorillard Inc and Reynolds American Inc. Due to the fact that an oligopoly market is hard to not only come into but also basically controlled by these large firms any new competitor is going to have a difficult time entering this market‚ being profitable in comparison to these firms and really having any type of say in the price or the output. A benefit of being an oligopoly is the

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    Introduction People’s Bank is a multi-service financial institution that has grown to have assets reach nearly $12 billion. When it started in 1842‚ it opened as a general savings bank aimed at the blue-collar worker who wanted to save his/her money. Now People’s offers many services such as mortgage loans‚ credit cards‚ checking accounts‚ and investment advisory and brokerage services. People’s also offers many different ways in which to do your banking whether it be at the local branch‚ the supermarket

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    Monopolistic Competition

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    Monopolistic competition Monopolistic competition is a form of imperfect competition where many competing producers sell products that are differentiated from one another (that is‚ the products are substitutes‚ but‚ with differences such as branding‚ are not exactly alike). In monopolistic competition firms can behave like monopolies in the short-run‚ including using market power to generate profit. In the long-run‚ other firms enter the market and the benefits of differentiation decrease with

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    Micro Environment Notes

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    must identify‚ assess‚ monitor and manage risks to supplies and risks to the price of supplies. o From Marketing 2nd Edition by Elliott‚ Rundle-Thiele Waller Competitors Types of competition include pure competition‚ monopolistic competition‚ oligopoly‚ monopoly and monopsony. Levels of competition include total budget competition‚ generic competition‚ product completion and brand

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    about substitutes and complements products in the market. 2. Microsoft Vista as monopoly. In economic‚ there are different market structures‚ such as Monopoly‚ contains single firm operating in the whole market‚ Duopoly‚ two firms in the market‚ Oligopoly‚ three or more firms in the market‚

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