leader Entry barriers Market commonality with rivals Product homogeneity Industry-based Considerations Concentration • Combined percentage of sales from top 4‚ 8 or more firms. • Easy to organize collusion; but‚ can lead to duopoly‚ oligopoly‚ cartels and could face antitrust laws. • Colluding firms force customers to pay more. Ex: Banana comes to U.S from 3 companies—Dole‚ Del Monte‚ and Chiquita. • Firms avoid ‘tit-for-tat’‚ or industry goes downward spiral. • Many rivals: price
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Introduction As one may have noticed in the past few years the price of oil has risen drastically. Either at the gas pump or at home in the winter with the heating bill the price of oil effects everyone. The beginning of this paper discusses what OPEC is‚ what it does‚ and why it is good or bad. Also it will begin to discuss the price of oil in the global oil market but mostly in our nation’s economy: who‚ what‚ when‚ where‚ why‚ how. The purpose of this research paper is to educate the reader
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energy The reality is‚ that the world oil demand is forecasted to grow in 2009. “World oil demand is forecast to grow by 0.9 Millions of Barrels per Day (mb/d) in 2009‚ averaging 87.71 mb/d which is 0.1 mb/d lower than in the current year.” (OPEC‚ Monthly oil market report‚ July 2008 p. 3). This report indicates that we expect a slow down in the years after 2009. Assumptions for this oil demand forecasts are; the Worlds Gross Domestic Product (GDP) grow will slow down compared to 2008‚ we expect
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prices‚ limit supply‚ and to limit competition. These groups are referred to as cartel. Cartel is prohibited by antitrust laws‚ in most countries; however they continue to exist nationally and internationally. The most notable cartel in the world is OPEC. OPEC Cartel which is an intergovernmental organization‚ which aims to influence and maintain
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Preliminary Lecture notes for a Micro Course Based on Microeconomics 8ed by Pindyck & Rubinfeld Prepared by Houston H. Stokes. Goal of the Notes: Allow the student to have an outline of the key ideas and solutions to a number of problems that will be discussed in class. Since the notes are distributed in WORD® format‚ students can edit the notes. Introduction Quote from Robert Mundell Man and Economics 1968 "Economics is the science of choice. It began with Aristotle
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The Role of Risk management in the managing price Volatility in the Global oil and Gas Market Energy is a basic requirement for all human activity. A main characteristic of every culture and society throughout history has been the way in which it has used the energy resource at its disposal‚ and the per capital consumption of energy is the common measurement of its level of development. The oil and gas market are the driving force of the global economy and accounts for an ample of the world’s
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Oil Price Analysis: The Impact Of Supply & Demand By Greg McFarlane It’s easy to curse and moan when gas seems expensive. The oil companies are abusing the helpless customers who are effectively indentured to them‚ and can name their own prices thanks to a system of collusion and profiteering. Something‚ probably involving legislation‚ ought to be done. Except the truth lies elsewhere. In the long run‚ oil is about as purely elastic a commodity as there is‚ every movement on the production and consumption
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- To differentiate between micro and macro business environment - To explain the terms SWOT‚ PEST‚ BPPEST‚ TOWS and SWOC in environmental analysis. - To describe the various business environmental forces - To state the strategic role of the environment on business performance Section 1: An Overview of Business Economics 1.1. Introduction Business economics is concerned with a total approach to organisational existence and activities. According to G.J de Cronje‚ in his popular book
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Unlimited resources usage 6 C. Inflation and economic crisis 7 D. Petroleum Price Speculation 8 E. Government Regulation 8 ii. The Chronology Analysis of Petroleum Price 9 A. Oil Prices in 1869-1967 9 B. Middle East Supply Interruptions 10 C. OPEC Fails to Control Crude Oil Prices 10 D. Prices of oil between 1980-1986 11 E. Oil prices in early of 1990’s 11 F. Oil prices in 2000’s 11 iii. The Depth Analysis on Petroleum Price During Recession Period 12 A. 1973 GLOBAL RECESSION 13 B. 1979
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which can be found in the Appendix ("OPEC: Frequently Asked Questions" 5 Oct 2003). OPEC reported in 2001 crude oil reserves stood at 1‚074‚850 million barrels of which 79% were in OPEC countries. They also reported that the world oil demand in 2000 was at about 76 million barrels per day. Oil is a limited resource and may one day run out. According to OPEC‚ there is enough oil in the member country ’s reserves to last another 80 years‚ while non-OPEC country ’s reserves might last only 20
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