... ECO/212 - PRINCIPLES OF ECONOMICS Group ID: BSAH0R4CU8 ONLINE MAIN January 9, 2012 Supply, Demand and Price Elasticity Paper InvestorWords.com (2012) defines a commodity as a “physical substance, such as food, grains, and metals, which is interchangeable with another product of the same type, and which investors buy or sell, usually through futures contracts” (InvestorWords.com, 2012). Differentiating Between Market Structures Table and Paper Resource: Market Structure Table Complete the Market Structure Table located on your student website. Write a 1,050 word paper addressing the following questions: Compare and contrast public goods, private goods, common resources, and natural monopolies. Explain how labor market equilibrium is affected by the supply and demand of labor. Select an organization with which you are familiar and identify the market structure of that organization. Describe the characteristics of the organization that make it a specific market structure. Evaluate the effectiveness of this structure for the organization. For your selected organization, summarize the factors that affect labor supply and demand. Availability of qualified personnel effects both labor supply and demand. For example: A critical shortage of nurses in this country effects the supply of qualified nurses for positions available in hospitals, and the demand for qualified nurses to fill those slots. A shortage of nurses effects rate of pay. The greater...
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...Differentiating Between Market Structures Simulation & Characteristics Table ECO/365 October 2, 2011 Differentiating Between Market Structures Simulation The “Differentiating between Market Structures Simulation” applied all four of the market structures to four major divisions of a fictitious transportation company called as East-West Transportation. The four divisions for the various products they transport are Consumer Goods Division, Coal Division, Chemical Division, and Forest Products Division. This paper will summarize the advantages and limitations of supply and demand, the effectiveness of structure, and will analyze how each market structure maximized their profits. The market structures represented in this paper are Perfect Competition, Monopoly, Oligopoly, and Monopolistic Competition. Perfect Competition According to the simulation the Consumer Goods Division operated in a market that perfectly competitive. There were several buyers and sellers, each of the sellers being a price taker and there were no barriers to entry. The limitations or advantages of the Consumer Goods Division are as follows. The competition is high so the demand for their service will be low. Continuing to supply this service would mean the company would have to spend more on improving the quality of its service so as to maintain and increase the demand. In the simulation, the first decision made was whether to cease operations in the Consumer Goods Division or to continue operations...
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...Differentiating between market structures Differentiating Between Market Structures in Kudler Kudler Fine Foods runs three local higher end specialty food stores in the area of San Diego Ca. Kudler vision is to be the best gourmet grocery store for the above average shoppers that are looking for the best meats, produce, cheeses, and wine. Kudler has three stores in southern California and considers itself without direct competition (Apollo, 2011, Strategic Plan). Here it will show what are Kudler strengths and weaknesses, market structures, competitive strategies, and recommendations. Strengths and Weaknesses for Kudler The survey that was taken in 2012 indicated that Kudler, store hours are the biggest strengths with over 71% of those responding, agreeing that the “store hours are convenient” and the “atmosphere and décor are appealing” (Apollo, 2011, Market Surveys). When comparing how the shopping encounter was, it comes out as a weakness. Roughly 40% of the customer surveyor’s say that the value of the products was good for the money, and about 60% say that customer service representatives were nice and respectful. Highlighting the key parts of the survey results, those who participated conquer with the saying that, every question decreased in the surveys for 2010 and 2011. Kudler is just one of the few stores in Southern California area that is in this type of food market, the weakness in price and the potential decrease in customer satisfaction could make an opening...
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...Differentiating Between Market Structures in Kudler ECO/365 Differentiating Between Market Structures in Kudler Kathy Kudler started Kudler Fine Foods out of La Jolla, California, in 1998 (Apollo Group Inc., 2011). With the success of the original store, she the opened stores in Del Mar and Encinitas California. Kathy Kudler came up with the idea for these high-end food stores as she has a fondness for cooking gourmet food. Kudler thought others might share her passion if they could conveniently locate the ingredients for these gourmet recipes. The first Kudler store was a complete success and turned a profit within the first year. As with any businesses some of the Kudler Fine Food stores were struggling with the declining economy. The Kudler store in Del Mar was having difficulty with expansion, higher wage costs because of unique work positions, and slow operations. The goal of any business is to increase profit. The company must have good oversight, smart marketing, and useful marketing survey results to determine if there are adjustments that could change the businesses profit. The monopolistic competition market structure include a large number of companies selling slightly similar products. There are very few barriers to enter into this market but there will be high costs for initial start-up. There are multiple dimensions of competition market structure including distribution outlets, advertising, and product attributes (Colander, 2010). ...
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...oligopoly Competition in the market. A monopoly market contains a single firm that produces goods with no close substitute, with significant barriers to entry of other firms. An A monopoly and an oligopoly are economic market structures where there is imperfect oligopoly market has a small number of relatively large firms that produce similar but slightly different products. Again, there are significant barriers to entry for other enterprises. In a monopoly, the seller charges high prices for the goods because there is no competition. In an oligopoly, the prices are moderate due to the presence of competition. However, they are higher than they would be in perfect competition. Barriers to entry in a monopoly market are high due to technology, high capital requirement, government regulation, patents and high distribution overheads. In an oligopoly market, the barriers to entry are high due to the economies of scale. A monopoly draws power from the fact that it is the only viable seller of the product in the industry. However, in an oligopoly, firms can influence the market by setting their prices, marketing strategies and customer service. In oligopoly, firms may collude rather than compete. The cooperation makes them operate as though they were one firm. This changes the market structure from being an oligopoly to a monopoly. There must be some measure of competition in an oligopoly market structure. The geographical size of the market also determines whether it is an...
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...What is Market structure and its sorts with case in Australia? Business sector is a spot where purchasers and dealers set the expense of administrations and merchandise. The idea of business sector structure is in this manner alludes to the opposition for products and administrations in the business sector furthermore qualities of the business sector that impact the conduct and aftereffects of the organizations working in that business sector (www.businessdictionary.com). The standard angles that center business sector structures are: amount of purchasers and suppliers in the business sectors, their relative course of action quality, with respect to capacity to set costs, the level of detachment and uniqueness of items, the states of entering and leaving the business sector and economies of scale. The connection and contrasts between these perspectives take into account the presence of a few business sector structures one is immaculate rivalry and flawed rivalry. Impeccable rivalry business sector is characterize as a business sector in which number of purchasers and suppliers are little and free and trade indistinguishable items with no sort of boundations. Flawed rivalry: in this all conditions are not quite the same as immaculate rivalry. It incorporates market structures, for example, • Monopoly • Duopoly • Oligopoly • Monopolistic rivalry (www.youarticlelibrary.com) Monopoly It is a business sector structure when there is one and only vender of...
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...Differentiating between market structures. Tiara Bingham ECO/365 11/26/2014 Al Gourrier Differentiating between market structures. There are certain factors that apply to all organizations. These factors are type of market structure, competitive strategies, customer base, and strengths and weaknesses. The success of a company depends upon these factors and if they format their business strategy to work within the different types of markets, if they can build upon their strengths and minimize their weaknesses, and provide the consumers with what they want. Market structures change depending on the condition of the market and the competition, in order for an organization to be successful, it has to be able to transform it business strategy to conform to market demands. Business strategies are decided after analyzing the market the company will compete in, competitors within that market and the consumer base. The organization that I chose to discuss is NV Energy. I will discuss the type of market that NV Energy operates in, why this market was chosen, How this company might work with other competitors in this market, and competitive strategies that could be used. NV Energy Nv Energy is the local power company established in Las Vegas Nevada. The type of market structure that Nv Energy operates in is called a Monopoly,in the case of NV Energy it is a public utility which is overseen by the government and allowed to operate as a monopoly. In a monopoly market structure a single company...
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...FINAL PAPER Economics for Business Case Study: Oligopoly in Indonesian Cement Industry BRIEF CONTENTS CHAPTER I: PREFACE..…………………………………………………………………..….. 2 1.1. Background ...………………………………………………………………………….. 2 1.2 Identification Problem……………………………………………………....................... 3 CHAPTER II: BASIC CONCEPT AND CHARACTERISTIC …………….............................. 4 2.1 Basic Concept of Oligopoly ……………………………………….................................. 4 2.2 Models of Oligopoly Competition ......…………………………….................................. 4 2.2 The Advantages and Disadvantages of Oligopoly Competition ....................................... 5 CHAPTER III: ANALYSIS .......................................................…………….............................. 6 3.1 Oligopoly of Indonesian Cement Industry ….................................................................... 6 3.2 Competition in Indonesian Cement Industry …................................................................ 9 3.3 Pricing Strategy in Oligopoly ......................................................................................... 10 3.4 Government Policy .......................................................................................................... 11 CHAPTER IV: CONCLUSION AND RECOMMENDATION .………….............................. 13 4.1 Conclusion ….................................................................................................................. 13 4.2 Recommendation ….............
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...Market Structures Kudler Fine Foods is a local food store that specializes in epicurean food in the San Diego metropolitan area. They specialize in bakery and pastry items, fresh meats, seafood, produce, packaged foods, specialty dairy products, wine and spirits, and much more. In their mission, Kudler Fine Foods vouch that they shop all around the world for their products and they choose only the finest. In addition to their gourmet food, the founder Kathy Kudler who was once a Vice-President of Marketing of a different, liked to cook gourmet meals. She got the idea that the San Diego metropolitan area needed a gourmet food store. She put together a business plan and opened the first Kudler Fine Foods in La Jolla, CA in 1998. Additionally, that store was profitable and she opened her second store by 2000 in Del Mar, then a third one by 2003 in Encinitas. In the following paragraphs, I will apply microeconomic concepts toward the competitive strategies of Kudler Fine Foods that affect its long term profitability. Additionally, I will evaluate Kudler’s competitiveness in the marketplace, including its customers’ views. In this same process, I will identify the market structure that I believe best applies to Kudler Fine Foods, and assess how the market structure positively and negatively affects Kudler’s long-term profitability. How Kudler competes in the marketplace Kudler Finer Foods is one of the only few competitors who offers gourmet foods in Orange County. They compete...
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...Is Amazon really a monopoly? Yuejiao Jiang Johns Hopkins University Carey Business School Business Writing and Research Pratt Professor Moore Many people think all large companies have monopolistic power on their market. A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity. Monopolies are thus characterized by a lack of economic competition to produce the good or service and a lack of viable substitute goods. The truth is not all companies with huge market share are monopolies, among them is Amazon. Companies like Amazon should not be regulated, but the opposite, should be encouraged due to its impact on the development of the whole industry as a catalytic role. Amazon is not a monopoly because it maintains low prices, benefits customers, and is consumer driven. First, according to Matthews (2014), companies that hold huge market share like Amazon should not be considered illegal because they are not raising prices for consumers. Amazon put customer experiences and low prices first. The price of books on Amazon has stayed stable for many years. People may question that Amazon has been raising prices of some books since last year. But, consumers are the ones make their own judgments towards price. If Amazon happens to raise the price of books, consumers still can purchase cheaper books from somewhere else. On this condition, Amazon is not a monopoly. Price is not the only thing that will be taken into consideration when...
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...Question: Evaluate the effectiveness of oligopoly market structure in achieving the market objectives of producers and consumers. (8m) Oligopoly is a market structure with only a few sellers offering similar or identical products. The products produce by the firms in oligopoly market structure may be homogeneous or differentiated. Example of oligopolistic includes commercial airlines, oil, automobiles, steel, computers and cigarettes. The market objective that consumers achieve in oligopoly market structure is consumers enjoy a wide range of products such as soft drink manufacturer similarly produces a range of their products. The quality of products is likely to be high because there is plenty of non-price competition which includes latest features of technology. However, consumers pay higher prices in oligopoly due to limited choices of producers. The available information is not complete for consumers because there is an incentive to keep secrets from each other among producers. Oligopolies are exciting market forms for producers. There is the prospect of above normal profits for those that can survive and perhaps dominate in the cut and thrust of competitive strategies. The big businesses that form oligopolies are able to afford research and development and the latest machines and equipment, and they use these high levels of technology to try to gain market share. Same as the consumers, the producers need to have information about production technologies and availability...
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...very competitive market. The OECD Competition Committee debated oligopolies in 1999. - Extracts. A formal definition of oligopoly is: “...a market structure with a small number of sellers - small enough to require each seller to take into account its rivals’current actions and likely future responses to its actions.” - Recognised interdependence is the hallmark of oligopoly. Kantzenbach and Kruse (1987, 10) offer a more technical definition asserting that an oligopoly exists, "... if the variation of a behavioural parameter by one of a group of competing firms leads to a perceptible change in selling conditions for the other competing firms…, thus causing them...to respond by changing their own market behaviour." If a dominant oligopoly already exists, the merger between two of its members or between an oligopolist and an outsider will lead to the oligopoly becoming even tighter. The tighter the oligopoly is, the more transparent competitive conduct will become and the easier it will be for conscious parallelism to occur. Oligopolies are markets where profit maximising competitors set their strategies by paying close attention to how their rivals are likely to react. In these conditions, firms might differentiate their products, which can benefit some consumers, but at a price. Oligopoly inter-dependence can also foster anti-competitive co-ordination. Competition laws prohibit collusion that raises prices, restricts output or divides markets. But the laws do...
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...Student Name: Professor: Institution Affiliation: Date: Examination of an oligopoly for profit company An oligopoly market setup is where there exist few sellers and producers. Oligopolistic markets exist when firms producing similar products enter into legal or illegal agreements to curtail entrance of other competitors so as have an upper hand to control production and pricing. Emergence of oligopolistic markets has slowly replaced monopolistic one’s due to coming up of similar firms producing and selling similar products. To curtail competition these firms merge or collude with emerging companies to control market prices, making oligopoly the modern day monopoly. Verizon’s Inc cell phone department is no different from the three giant U.S.A based telecommunication companies that is T-mobile, AT&T and Sprint. To dominate the market structure Verizon’ cell phone segment has continued to produce and sell uniquely branded products and packages, for it’s current the sole online seller of the iPhone 4s cell phone. Verizon’s cell phone department uses non-pricing competition to avoid self defeating outcomes when pursuing large scale profits. This method is used by the telecommunications in the U.S.A to remain relevant in the market (Mazzeo, Michael 2012 ). Brand loyalty in oligopolistic markets has a major role player when maintaining a customer base and attracting new customers. Verizon has devised various loyalty products to attract more...
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...either cut the route or maintain the route. UA is one of ten major airlines operating in the United States. They currently operate 231 domestic and 143 international routes (Destinations). In 2015 they generated revenue of $37,864 million and had operating cost of $31,697 million, down 3% and 11% from the year prior. At the same time UA was able to increase their profits by 118% to $5,167 million (News, 2016). As of Feb 2016, UA currently holds 14.6% of the US market for flights (RITA, 2016). Overall, UA had a very healthy year, profits were up and operating cost were down resulting in a substantial profit. Breaking down the route from Washington DC to San Francisco. It represents .06% of UA’s market share. According to a search on Google flights the route only has two carriers with a combined nine daily flights, UA operates seven and Virgin Airlines two flights daily (Google Flights, n.d.). UA holds a firm grasp of 78% of the route to San Francisco. In the US we have four different types of market structure. These are competitive, monopoly, monopolistic competition and oligopoly. The airline industry falls into the oligopoly...
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...faster processes, compact components and increased efficiency. The brand of Eaton isn’t well known amongst consumers, however very well known in the manufacturing industry. The functionality of the product is said to be a “high performance and cost effective”. The style of the product’s aesthetics is a modern and contemporary design as shown below. Eaton’s reputation is said to be higher than their competitors as judged by the quality of the products they provide. Safety of the product is well designed with curved down edges and the components inside are well placed in a firm position. The promotional strategy for this product is the technological push for the market. This in turn will draw in demand pull for the best technology available to buyers. Since Eaton is a major firm in the market, it has a relatively high market communication budget hence it has a high form of promotion strategies available to them. This way they can promote their products such as the Panelmate Touch screen easily. The packaging for this product would be appealing, however not as much as a possible consumer product. The customers that order this product already has pre-knowledge of what the product is capable of doing, so does not need. The distribution for this and other Eaton’s products will be a channel of whole sales to firms. This method of delivery and production is called Right on Time; which means it is delivered on demand by the firm. The estimated retail price for this product is around $4800...
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