TEST - MARKET STRUCTURES - TEST Multiple Choice This monopoly occurs when a firm develops new technology that changes the way goods are produced or creates an entirely new product. a. geographic b. natural c. government d. technological 2. A monopoly owned & operated by any level of government: a. geographic b. natural c. government d. technological 3. Exists when a single firm controls the total production or sale of a product. a. oligopoly
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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 competition and monopoly. When there are only two firms in the market the situation is known as duopoly Example (hypothetical): a market has the below players; A-56‚ B-43‚ C-22‚ D-12‚ E-3 & F-1 The three firms dominate this market with a concentration ratio of 88.3% i
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B. Answers to Short-Answer‚ Essays‚ and Problems 1. What are the major features of monopolistic competition compared to pure competition and pure monopoly? In monopolistic competition‚ there are a relatively large number of firms‚ not the thousands of firms as in pure competition. The monopolistically competitive firms produce differentiated products‚ not the standardized products of pure competition. Product differentiation means that monopolistic competitors engage in some price competition
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as livestock‚ corn and wheat. Pure Monopoly A pure monopoly industry infrastructure comprises a single producer or supplier of a product or a service that has no close substitutes. The single industry player controls all resources and technology and blocks potential competitors from entering the industry. Monopolies are public or private. Public monopolies serve the general public and their primary goal is not profit maximization. Examples of public monopolies include local telephone companies and
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Know-how VII. Monopoly VIII. Oligopoly IX. perfect competition (pure competition) business definition X. workable competition business definition XI. Cost leadership XII. Differentiation (economics) XIII. Barriers to exit XIV. Inventory flow XV. Incoterms XVI. Multinational Corporation XVII. Parent company XVIII. Decentralization XIX. Centralisation XX. License XXI. Intellectual property XXII. Copyright XXIII. Patent XXIV. Legal monopoly XXV. Trademark
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Malaysia‚ but latter in June 2010‚ AAAN was delisted from the Main Board of Bursa Malaysia and in 19th October‚ 2012‚ Astro relisted under Bursa Malaysia (OSK‚ 2012). After relisted again under Bursa Malaysia‚ according to Yin (2012)‚ Astro are enjoying monopoly market with 99% of the market share and also Astro is the largest pay TV operator not only in Malaysia but also in South East Asia with total 3.3 million subscribers‚ among these 3.2 million are residential subscribers as shown in chart-1. Below
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Imagine a firm with the same cost structure but in each of the four market structures: Competitive‚ Monopolistically Competitive‚ Oligopoly‚ and a Monopoly. Explain the long run outcome in each market structure. A purely competitive market insures that no buyer or seller has any market power or ability to influence the price. The sellers in a purely competitive market are price takers. The market set the price and each seller react to that price by altering the variable input and output in the short
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OUM TOPIC 8: MONOPOLY‚ MONOPOLISTIC AND OLIGOPOLY TOPIC 8: MONOPOLY‚ MONOPOLISTIC AND OLIGOPOLY Introduction Apart from perfect market competition‚ we will look at three other types of market structure‚ namely monopoly‚ monopolistic and oligopoly in this topic. We will also compare between the characteristics of the market structure. In this topic‚ the emphasis will be on monopoly‚ while the other two structures will be discussed briefly. Learning Objectives At the end of this topic
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paying as much as possible. I find this assertion false and misguided. While some markets are more desirable than others‚ no one is being fooled into paying as much as possible. In the following essay I will evaluate each of the four market types (monopoly‚ oligopoly‚ perfectly competition‚ and monopolistic competition) and discuss why I believe Mr. Green’s statement is incorrect. Markets are the heart and soul of a capitalist economy‚ and different degrees of competition lead to different market
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Comparison and contrast the 4 types of market structure: Perfect Competition Definition * there are many buyers and sellers‚ the products are homogeneous and sellers can easily enter and exit from the market Characteristics * Large number of buyers and sellers – firms are price takers. * Homogenous or standardized product – the buyers do not differentiate the products of one seller to another seller. * Free of entry and exit into the market. * Role of non-price competition
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