structures in economics are competitive markets‚ monopolies‚ and oligopolies. Each market plays a different role in the economy. Competitive markets are when no firm has the power to affect the market price of a good and “many buyers and sellers trading identical products so that each buyer and seller is a price taker” (Mankiw‚ 290). A monopolistic market is when a specific person or enterprise is the only supplier of a certain good. An oligopoly is a market in which a good has only a few “similar or identical”
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“Explain the characteristics of perfect competition‚ monopoly and oligopoly and consider the usefulness of these models in understanding business activity in the UK economy.” Introduction Definitions of • Perfect competition • Monopoly • Oligopoly Perfect Competition: - All Firms sell an identical product - All firms are price takers - All firms have a relatively small market share - Buyers know the nature of the
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taken to move the overstock through advertising or sale promotions (Kyle‚ n.d.). Pricing policies are critical depending on the type of market structure to avoid the business failure. The analysis of perfect competition‚ monopolistic competition‚ oligopoly‚ and monopoly market structures builds a the foundation on which pricing strategry is necessary to generate the optimal profit. Perfect competition market structures depict a market were single firms do not effect the price and
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Section One: Multiple Choice 1. If a 20% decrease in the price of long-distance phone calls leads to a 35% increase in the quantity of calls demanded‚ you may conclude that the demand for phone calls is a. elastic b. inelastic c. unit elastic d. stretchy elastic 2. Which of the following pairs are examples of substitutes? a. Popcorn and soda b. Automobiles and bicycles c. Boats and fishing tackle d. Wine and cheese 3. If a price in a competitive market is “too high to clear the
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STUDY GUIDE FOR FINAL EXAM Remember to bring a #2 pencil‚ eraser‚ non-programmable non-graphical calculator‚ a picture ID and your brain cells You an bring markers or highlighters to help you find consumer and producer surpluses for the graphs in chapters 9 and 7 The final consists of 50 multiple choice questions. Number of questions from each chapter is highlighted. BASIC RULE TO USE WHEN STUDYING: THE MORE RECENT THE MATERIAL‚ THE MORE TIME YOU SHOULD SPEND STUDYING IT Material which was
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Market Study – Elevator Industry Contents: Page No. 1. Introduction 3 2. Background – History of Elevators 4 3. Market Scenario 6 4. Elevator Industry as an Oligopoly 8 5. News from the Industry 10 1. Introduction Elevators have become an integral part of any building facility over the past few decades. In our everyday life‚ we depend on them for vertical transportation in offices‚ schools‚ public buildings‚ airports‚ sub-stations
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Table of Contents: Executive Summary 2 Company Background 3 Market Structure 3 Key economic indicators 4 Employment 4 Pricing Strategy 4 Product Range 5 Markets 5 Profitability 6 Weekly share price graph 7 Analysis of Research in Motion Ltd weekly share price 7 Core Philosophy at Research in Motion Ltd 8 Advertising Strategy for Research in Motion Ltd 9 Executive Summary: The following case study was conducted to provide an economic overview of the current performance
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Barriers to entry: In theories of competition in economics‚ barriers to entry are the obstacles and hindrances that make it difficult for a company to enter a given market or industry. The most common barriers to entry include government regulation and economies of scale‚ but nowadays it is increasing for entry barriers to be viewed as a cost. Stigler defined barriers to entry as “A cost of producing which must be borne by a firm which seeks to enter an industry but is not borne by firms already
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INTRODUCTION The pharmaceutical industry is praised as one of the leading industrial sectors. The fruits of its extensive research and development are traded worldwide and have improved the length and quality of life of countless individuals. At the same time‚ however‚ the industry is criticized for its marketing and pricing practices—and even for its research and development priorities. Industry’s consistently high profits and large expenditures on research and development as well as on marketing
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QUESTION 1 QUESTION 1.1 Market structure MTN and Vodacom 1.1.1 Introduction The South African mobile market structure can be classified as an oligopoly‚ or even a duopoly‚ with two firms‚ Vodacom and MTN of more or less the same size dominating the market. Both Vodacom and MTN have market shares of at least 35%. This implies that both firms can be classified as ‘dominant’ i.t.o. the Competition Act. It is also important to note that the combined market share of the two large players is approximately
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