Chapter 14 1. 4 main types of market structure based on number of firms in the industry and product differentiation: perfect competition‚ monopoly‚ oligopoly‚ and monopolistic competition. 2. A monopolist is a producer who is the sole supplier of a good without close substitutes. An industry controlled by a monopolist is a monopoly. 3. The key difference between a monopoly and a perfectly competitive industry is that an individual‚ perfectly competitive firm faces a horizontal demand curve but
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views of Marxian take both the term commodity‚ labor‚ and value and combine it into his Labor Theory of Value. With these terms and actions between laborers created surplus also relates to capitalism‚ and the origin of surplus in general. Sweezy defines a commodity as “something produced for exchange rather than use for producer”(Sweezy‚ 23). In Marx’s view regarding the qualitative-value problem‚ “every commodity has a two-fold aspect‚ that of use value and exchange value” (Sweezy‚ 26). Both
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Allan (2007). In the diagram below ‚the market is in equilibrium at price P1 and output Q1. At this point‚ the total area of consumer and producer surplus is maximized.If for example ‚suppliers were able to restrict output to Q2 and hike the market price up to P2‚ sellers would gain extra producer surplus by widening their profit margins‚ but there also would be an even greater loss of consumer surplus.Thus P2 is not an allocative efficient allocation
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3 price discrimination With the rapid development of economy and market‚ the price discrimination phenomenon is more and more universal and the form is more and more multiple. Price discrimination refers to companies selling exactly the same or similar production to different customers at different prices. 1In November 2006‚ the major IT Web site noted‚ Lenovo in the United States launched a holiday promotion‚ and four models of ThinkPad were under undercut. TP R60 price was down from $
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components and economic roles each play to reach equilibrium will aid in comprehension of the processes. Components of market equilibrium include determinants of the law of demand‚ determinants of the law of supply‚ efficient markets theory‚ and market surplus or shortages. The tire industry continually experiences fluctuations in demand‚ supply‚ and price. The following discusses the components of the effects of a tire manufacturer in original equipment (OE) and replacement (RE) tire markets and changes
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GDP - Gross Domestic Product is an estimate of the amount of economic activity in an economy and is produced by the Office of National Statistics. Elasticity of demand (Ped) = % change in demand of good X / % change in price of good X • If the PED is greater than one‚ the good is price elastic. Demand is responsive to a change in price. If for example a 15% fall in price leads to a 30% increase in quantity demanded‚ the price elasticity = 2.0 • If the PED is less than one‚ the good is
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Rural Marketing System in the North Eastern States: Problems‚ Diagnosis and Strategy Perspective Introduction … : Agricultural Marketing system in North-Eastern States … : Rural Marketing system in Assam … : Rural Marketing system in Tripura … : Agricultural and Rural Marketing system in Meghalaya … : Perceptions of farmers on Rural Marketing … : Promoting Agribusiness Marketing Channels … : Development of Marketing Infrastructure for Farmers … : Summary and Recommendations … INTRODUCTION
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Rural Marketing Notes by Faraz.Vehvaria on NOVEMBER 8‚ 2010 in NOTES (These are notes are for reference‚ if any topics are missing‚ please check your ref books) CHAPTER 1 PROFILE OF RURAL MARKETING Definition of Rural (Nov. 05) Government agencies from IRDA & NCAER define ‘Rural’ as “a village with a population of less than 5‚000 with 75% of the male population engaged in agriculture etc.”
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competition. After discussing several subcategories within economic play‚ Wolff believes that we have a moral obligation to help those that may be taken advantage of in the commercial world. These potential “losers”‚ he states‚ fluctuates between producers and consumers. Within his description‚ Wolff clarifies that exploitation is a direct consequence of economic competition. “ A competition has been set up for the general good‚ but without sufficient regard to how this affects the people who are enticed
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www.tutor2u.com Plan Number: 10 Topic: Date 30 December 1999 Oligopoly Question: Explain how a firm operating in an oligopolistic industry can attempt to increase its market share An oligopoly is a market dominated by a few producers each of whom has some degree of market power. The industry is normally characterised by barriers to entry in the long run and each firm must take into account the likely reaction of other suppliers when considering changes in prices. Each seller
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