many reasons for which a price war may occur‚ in all cases the reason for starting the price war is different but the reason for its continuation is not to lose sales. They are when a firm attempts to maximise capacity‚ for survival purposes‚ in oligopoly markets‚ where there are homogeneous products and when a firm adopts a penetrative pricing strategy. "Excess capacity refers to a situation where a firm is producing at a lower scale of output than it has been designed for" Excess capacity http://stats
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Introduction Economists group industries into four distinct market structures: pure competition‚ pure monopoly‚ monopolistic competition‚ and oligopoly (McConnell & Brue 2004). Understanding the different market structures will help to understand how price and output are determined and will also help to evaluate the efficiency or inefficiency of those markets (McConnell & Brue 2004). This paper will briefly explain each market structure and will also explain how Quasar Computers evolved through
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film price discriminates. (NOTE: This should not be perfect price discrimination.) 2. Assume the following game is played one time only. Based on the information in the payoff matrix‚ PNC Bank and Citizens Bank are considering an implicit collusive agreement on interest rates. Payoffs to the two firms are represented in terms of profits in thousands of dollars: Citizens Bank Collude: Raise Rates Defect: Keep Rates where they are PNC Collude: Raise Rates (900‚ 600) (700‚ 800) Defect:
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gifted or talented also require a learning environment that supports their unique abilities. Generally an evidence based practice is an instructional strategy‚ intervention‚ or teaching program that has resulted inconsistent positive result. In collusive classroom which includes children with and without disabilities needs organize desks in group
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managerial decisions. We can also consider the market structure as describing the state of the market with respect to competition. Market structures Monopoly Perfect competition Imperfect competition Monopolistic competition c Oligopoly Overview: Perfect competition is a theoretical market structure. It is primarily used as a benchmark against which other market structures are compared. The industry that best reflects perfect competition in real life is the agricultural industry
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Duran Apostol‚ one of the original founders of the newspaper‚ were sold and distributed to its employees. 4. What is an oligopoly? It is a situation in which a few families dominate the market. 5. Compare the mass media oligopoly before the Martial Law period and that which prevailed after the EDSA people power revolution. Explain you answer. The Mass Media oligopoly before the Martial Law period was more of business centered while the Mass Media which prevailed after the EDSA people power
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company’s strengths and weaknesses. The strengths of the company allows the company to sustain itself in the marketplace. However the company’s weaknesses imposes threats to the company to remain a leader in its current region. The company is an oligopoly market structure‚ because there are only a handful of similar stores that offer same products and services in its area. If the company imposes the recommendations‚ the company will be able to take a substantial lead in the market‚ and also began
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TELECOMMUNICATIONS INDUSTRY The telecommunication industry is considered a vital part of our everyday lives. Although it only represents about 2.4 percen‚ the services it provides are important to other sectors in the economy. One of the most debatable topics in economics is the Telecommunication Act of 1996‚ and according to the Federal Communication Commission‚ “It is the first major overhaul of telecommunications law in almost 62 years. The goal of this new law is to let anyone enter any communications
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2. The 4Ps of Marketing – Product‚ Price‚ Promotion‚ and Place Needs are obviously met by the product itself. Needs‚ however‚ can also be met by the other components of what is called the marketing mix. These other components are Price‚ Promotion‚ and Place. The Price component of the marketing mix is defined as the original price that a producer sets for its product. This original price may be different from the final price paid by buyers because of promotional offers or because of individual
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Successful business is most important personal objective * Growth objective * Profit maximization * Model * Economic profit ≠ accounting profit Market structures * Perfect competition * Monopolistic competition * Oligopoly * Monopoly Perfect competition * Many (small) suppliers and buyers: ‘price takes’ * Demand function for individual company * Products are perfect substitutes * Free entry and exit * Information is perfect (available
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