Determine the market structure for which firm exists in and explain convincingly why your team believes so. Dell market structure is monopolistic competition. Why? This is because Dell has many competitors such as Toshiba‚ Acer‚ Sony‚ Lenovo‚ Asus‚ Hp‚ Apple‚ and Sharp .The existence of these firms makes Dell not the only single computers firm in the market. This have let Dell met the conditions which is many sellers in monopolistic competition. Thus‚ Dell pricing decisions will not affect the
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|Dudley College of Technology | |Market Structures | | | |
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Quasar Computers and Different Market Structures ECO/561 July 22‚ 2012 Quasar Computers and Market Structures There are four types of market structures in the economic marketplace; monopoly‚ oligopoly‚ monopolistic competition and pure competition (McConnell‚ Brue‚ and Flynne (2009). The Market Structure simulation (University of Phoenix‚ 2012) presented a case of Quasar Computers and the business decisions that the company faced in each of these business structures. This paper presents a summary
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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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According to the principles of microeconomics market structures can be identified as perfect competition‚ oligopoly or monopoly. In our society today and the way business is conducted‚ market structures are not strictly defined by on of these particular types. They can be composed of a mix of them. A market structure that has a higher level of competition can be more efficient than those that have lower levels of competition. We know this since lower competition increases the producer’s surplus;
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Oligopoly Market Structure Under Perfect Competition or Monopolistic system there are so many firms in the industry. None of the firms worry about the effect of their actions on their rival firms. The type of market structure describe in this question is Oligopoly. Oligopoly is the market structure where few large market firms compete with each other. Supermarkets (Tesco‚ Morrison’s and Asda) and cars are the perfect example for oligopoly market structure in the UK. In oligopoly market structure each
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Market structure refers to: • Nature and degree of competition within a particular market • The number of firms producing identical products which are homogenous Oligopoly: This is a market structure in which the market is dominated by a small number of firms that together control the majority of the market share. Few firms dominate Although only a few firms dominate‚ it is possible that many small firms may also operate in the market e.g. the major airlines. It is a situation between perfect
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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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competition and oligopoly affect price and output determination in these market structures. Both monopolistic competition (MPC) and oligopoly generally determine price and output based on the profit-maximising condition that marginal cost (MC) equals to marginal revenue (MR). Due to the different features of both monopolistic competition and oligopoly such as the barriers to entry (BTE)‚ which affects the number of sellers as well as market power‚ nature of product and possibility of enjoying economies
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MARKET STRUCTURE AND COMPETITION EXERCISES Exercise 1: The own firm’s price elasticity is a measure that evaluates how the firm’s demand changes when it alters the price of the good or service offered‚ given that the rest of the variables remain fixed. While the cross-price elasticity measures how a firm’s demand changes when some other firm alters its price. Therefore‚ the second term considers the existence of interrelated firms in the market‚ that is‚ the fact that one firm’s actions affect
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