elasticity of demand. Assignment 2 There four types of market structures that exist‚ and these are perfect competition‚ monopolistic competition‚ monopoly and oligopoly. These categories have been made to help people understand how businesses operate and how prices‚ outputs and profits are determined. The four market structure types are there mainly for the purposes of organization. Competition is useful because it reveals actual customer demand and induces the seller (operator) to provide service
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A competitive market is it is both unable to influence the price of its product and the firm takes as given the price of its product set by supply and demand in the market. When a firm is in the competitive market the only way it is going to survive is to have market power. If a firm has market power then it can set its own price‚ which is called a price setter. The characteristics of a competitive market for a firm are when there a large number of small firms to compete with. Each firm sells the
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Chapter 7 Competition and Policies towards Monopolies and Oligopolies‚ Privatization and Deregulation Suggested Answers to the Review Questions I. Questions 1. Pure monopoly refers to the case where: a) there is a single firm selling the commodity‚ b) there are no close substitutes for the commodity‚ and c) entry into the industry is very difficult or impossible. If we further assume that the monopolist has perfect knowledge of present and future prices and costs‚ we have perfect monopoly.
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firm has the power to establish its price‚ Answer Selected Answer: P > MR. Correct Answer: P > MR. Question 6 10 out of 10 points Which of the following characteristics is most important in differentiating between perfect competition and all other types of markets? Answer Selected Answer: whether or not firms are price takers Correct Answer: whether or not firms are price takers Question 7 10 out of 10 points In economic analysis‚ any amount of profit
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contrasts with amonopsony which relates to a single entity’s control of a market to purchase a good or service‚ and with oligopoly which consists of a few entities dominating an industry) Monopolies are thus characterized by a lack of economic competition to produce the good or service and a lack of viable substitute goods. The verb "monopolize" refers to the process by which a company gains the ability to raise prices or exclude competitors. In economics‚ a monopoly is a single seller. In law‚ a
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Page 1 of 14 THE UNIVERSITY OF NEW SOUTH WALES SCHOOL OF ECONOMICS SESSION 1‚ 2009 ‚ ‚ I ECONllOl MICROECONOMICS I FINAL EXAMINATION TIME ALLOWED - 2HOURS THIS PAPER IS WORTH 65% OF THE TOTAL SUBJECT MARK This examination paper consists of two parts - Part A and Part B Part A consists of 20 multiple choice questions each worth onc and one quarter (1.25) marks. Answer all the questions in Part A on the answer sheet provided‚ using pencil . only: Print your student number‚ name and
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Week Three Team Activites ECO/365 Team Activity One Learning Team B feels that there are government programs that do assist in their local towns to attract more business and bring in employees. Our local towns are developing programs to manage solid waste activities‚ tax incentives‚ and low interest loans that will increase business and bring in new employees and retain employees. Many cities and towns offer tax incentives for companies to relocate to their area. They offer these
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1 compare and contrast sole proprietorships‚ partnerships and corporation. In your essay describe each of these forms of business ownership (and compare them). And‚ provide three advantages of each based on text and class lectures. Most business is uncomplicated‚ owner-operated operations‚ or what are known formally as sole proprietorships. The owner or manager takes all the responsible for liabilities incurred by the organization and has control over its actin. Advantages of a sole proprietorship:
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within which firms interact.” Currently the office supply market is saturated and the competition is tight. The leading contenders for this type of market are Staples and Office Depot‚ but there are many choices available to consumers looking to get the most value for office supplies. It is ironic that both Staples and Office Depot opened for business in 1986. These companies fall under a monopolistic competition structure. Staples and Office Depot maintain a high marketing presence and are recognized
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Significance of international trade to UK business organizations 10 Market Opportunities: 10 Global Growth: 10 Impact of the European Union policies on business organizations 10 Competition policy 11 EU Growth Program 11 Conclusion 13 References 14 Introduction The combination of internal and external factors such as: competition; clients and
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