MARKET STRUCTURES What is a Market structure? In economics Market structure is the way the market is organized ‚ based largely on the number of firms in the industry‚ number of buyers and levels of competition ‚ for example Monopoly‚ oligopoly ‚ Perfect Competition. Monopolistic competition is the market structure is the market structure I am going to base this assignment on. Monopolistic Competition Monopolistic Competition is a type of imperfect competition such that producers
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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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reduce their price? Oligopolists sometimes engage in price competition when other attempts to gain market share fail. The result is lower prices‚ increased output‚ and smaller profits. Since price competition is typically self-defeating in an oligopoly‚ rival firms usually attempt to differentiate their product to gain market share. 3. Dominos and Pizza Hut hold 66 percent of the delivered-pizza market. Should antitrust action be taken? Dominos-Pizza Hut merger resulted in a HHI value greater
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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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Candidate Name: Jutadhaj Visudhipol Candidate Number: 000964-082 School Name: Geelong Grammar School School Code: 0964 Examination Session: November 2011 Submission Date: 3 June 2011 Extended Essay (Economic) Research Question: To what extent does the competition in the domestic low-cost airlines industry of Thailand reflect price versus non-price factors? ABSTRACT WORD COUNT: 270 ESSAY WORD COUNT: 3847 SUPERVISOR’S NAME: Mr. Justin Kristiansen Abstract In the domestic low-cost airlines
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collected from the newspaper article and other research done on the topic. Findings from the research‚ coupled with economic theory have given a analytic view of the beer industry. Results from the research show that the Australian beer industry is an oligopoly with possible significant changes to take place in the near future. The report shows governmental‚ market and economic impacts faced by the market now and into the future. Foster’s group is faced with some important decisions about the
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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 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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2. With reference to an industry of your choice‚ identify a real-world example of firms formally or tacitly engaging in collusion‚ taking care to fully explain the nature of the collusive conduct. Using the economic theory presented in class‚ analyse the drivers of collusion in your chosen case. Also‚ critically evaluate the effects of an eradication of collusion – which would strengthen the competition between these industry rivals – on both the welfare of consumers and the financial performance
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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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