ALTERNATIVE MARKET STRUCTURES It is traditional to divide industries to categories according to the degree of competition that exists between the firms within the industry. There are four such categories. At one extreme is perfect competition‚ where there are many firms competing. Each firm is so small relative to the whole industry that it has no market power to influence price. It is a price taker. At the other extreme is monopoly‚ where there is just one firm in the industry‚ and hence no competition
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Introduction By the late- 1990s fast-food chain McDonalds had enjoyed 40 years of exceptional performance. McDonald’s brand mission is to be a customers’ favorite place and way to eat. McDonald’s worldwide operations are aligned around a global strategy called the Plan to Win‚ which center on an exceptional customer experience – People‚ Products‚ Place‚ Price and Promotion. They are committed to continuously improving theirs operations and enhancing customers’ experience. McDonalds place the customer
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there is a threat of bird flu which is a deadly disease spreading among chickens‚ the demand for chickens will decrease and the demand curve will shift to the left as shown in the figure 1. As a result‚ the equilibrium market price will decrease from P1 to P2 and the equilibrium market quantity will decrease from Q1 to Q2 in the short run. Q.5.1 b) Figure 2: As the poultry in country X is perfectly competitive with the supply of chicken coming from both domestic firms and farms located
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In a oligopolic market structure‚ there are a few interdependent firms that change their prices according to their competitors. Ex: If Coca Cola changes their price‚ Pepsi is also likely to. Characteristics: Few interdependent firms A few barriers to entry Products are similar‚ but firms try to differentiate them There is branding and advertising Imperfect knowledge (where customers don’t know the best price or availability) To compete or collaborate? Since firms are interdependent‚ they
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Oligopoly In a oligopoly market structure‚ there are a few interdependent firms that change their prices according to their competitors. Ex: If Coca Cola changes their price‚ Pepsi is also likely to. Characteristics: * Few interdependent firms * A few barriers to entry * Products are similar‚ but firms try to differentiate them * There is branding and advertising * Imperfect knowledge (where customers don’t know the best price or availability) Revenue Curves Total Revenue
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export in 1993‚ with a modest quantity & value‚ GFC is now exporting its products to the tune of US$ 12 million annually to more than 30 countries in the World. GFC fans became an instant success due to their quality and durability in the entire markets share these were introduced including countries in Asia‚ Middle East‚ and Africa & Europe. GFC became the first electric fan manufacturing company to win Export Trophy Award in Pakistan. Now‚ GFC has won its 12th Export Trophy Award. GFC also
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“In the first quarter of 2010‚ the market for private homes in Singapore saw a record breaking prices and transaction volumes‚ prompting calls for government intervention to cool the market.” Using economic analysis‚ explain the reasons for the “record breaking prices and transaction volumes” for private homes in Singapore. Private homes in Singapore seeing a record breaking prices and transaction volumes is due to the actions of both the consumers and the producers‚ which will cause a shift in
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optimize price. It is an organization with a very desirable position in the world; very few companies can experience the opportunity to determine their own prices without loosing significantly market share. OPEC is considered a Monopolistic-Cartel type of organization. Firm’s demand curve This type of structure has the advantage that while increasing oil prices may shift the demand curve. The model allows backstop technology and tariffs on oil imports; therefore‚ the imposition of tariffs to importing
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AT&T vs. Verizon IPhones which network provider is better? It is the iPhone battle AT&T vs. Verizon for over three years‚ iPhone owners have grumbled about drop calls and slow service and prices on AT&T the exclusive cellular network for Apple’s iPhones. Now they have a chance to see if Verizon can do any better. On February 10‚ AT&T will no longer be the only network offering the iPhone. With Verizon also offering iPhones‚ it is leaving many
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Devon Daniel Verizon Verizon stars with WorldCom in 1983 when Murray Waldron and William Rector came together to sketch out a plan create a long-distance telephone service. Long Distance Discount service‚ became their new company that began operating as a long-distance reseller in 1984. The new company grew quickly in the next fifteen years‚ over time it change to WorldCom. The company became one of the largest telecommunications corporations in the world. They also became the largest bankruptcy
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