American Finance Association Market Timing and Capital Structure Author(s): Malcolm Baker and Jeffrey Wurgler Source: The Journal of Finance‚ Vol. 57‚ No. 1 (Feb.‚ 2002)‚ pp. 1-32 Published by: Wiley for the American Finance Association Stable URL: http://www.jstor.org/stable/2697832 . Accessed: 08/09/2013 22:22 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use‚ available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a
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Differentiating Between Market Structures To understand what the difference is between the types of market structures first a person must comprehend exactly how supply and demand affects private goods‚ monopolies‚ common resources‚ and the public. These structures affect directly how the labor market equilibrium is established. Many businesses have this type of market structure‚ which affects indirectly and directly labor supply and demand. Wal-mart is a great example of a business that has
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ECONOMICS OF INDUSTRY ASSIGNMENT QUESTION: Market structure in the aircraft manufacturing industry The market for commercial passenger aircraft is an oligopoly dominated by Boeing and Airbus. Critically evaluate competitive factors which influence firm growth‚ new product Development and pricing in the commercial aircraft market. [60%] How is the commercial aircraft market different from the market for personal computers‚ In terms of market structure‚ new product design and growth opportunities? [40%]
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Introduction – Market structures and cases under study Definition - The interconnected characteristics of a market‚ such as the number and relative strength of buyers and sellers and degree of collusion among them‚ level and forms of competition‚ extent of product differentiation‚ and ease of entry into and exit from the market. Market structures under study are ones which are more pronounced than others in the real world i.e. ‘Monopolistic competition’ and ‘Oligopoly’. Very few markets in real
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demand curve facing the firm is horizontal. No new firms enter or leave the industry. The number of firms in the industry‚ therefore‚ remain the same. Under perfect competition‚ the firm takes the price of the product as determined in the market. The firm sells all its output at the prevailing market price. The firm‚ in other words‚ is a price taker. Equilibrium of a Competitive Firm: The short-run equilibrium of a firm can be easily explained with the help of marginal revenue
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Questions on Market Structure Section A – Multiple Choice Q1 Which market model has the least number of firms? (a) Monopolistic competition (b) Perfect competition (c) Monopoly (d) Oligopoly Q2 Perfect competitive firms maximize: (a) Total profits by producing where price exceeds average total cost by the greatest amount (b) Per unit profits by producing where marginal revenue equals marginal cost (c) Total profits by producing where price equals marginal cost (why not MC=MR?) d) Market share by producing
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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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companies have the market structure of an oligopoly. An oligopoly is a market structure where there are a few dominant firms whose behavior is interdependent. There are a few dominant firms relative to market size‚ and they each command a large proportion of the market share‚ thus having strong monopoly power. Examples of petrol companies include Shell‚ Caltex and Exxon Mobil. Their demand curve is downward sloping‚ meaning that they are price setters. Petrol is a homogeneous product‚ hence the oligopoly
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Marketing – Unit 3 Task 1 Describe how marketing techniques are used to market products in these 2 organizations. A definition of marketing : The management process through which services move from concept to the customer. It includes the four elements called the 4 P’s of marketing: 1. Product - identification‚ selection and development. 2. Price - determination of its price. 3. Place - selection of a distribution channel to reach the customer. 4. Promotion - development and implementation of
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Diversify on core to sustain competitive advantage Introduction Company urges invest in something new to achieve advantage to develop their business. However with technology improving and market becoming mutual the “pie” seems not big enough for such increasing amount of investors. Many fail to gain economies of scale. Moreover‚ in the current market company is in the competition also turns to be fiercer. An excessive investment to unrelated and “hot” may compel company neglect their existing
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