...PERFECTIVE ASPECT We use the present perfect to show that something has continued up to the present They’ve been married for nearly fifty years. She has lived in Liverpool all her life. … or is important in the present: I’ve lost my keys. I can’t get into the house. Teresa isn’t at home. I think she has gone shopping. We use the present perfect continuous to show that something has been continuing up to the present: It’s been raining for hours. We’ve been waiting here since six o’clock this morning. We use the past perfect to show that something continued up to a time in the past: When George died he and Anne had been married for nearly fifty years. ... or was important at that time in the past: I couldn’t get into the house. I had lost my keys. Teresa wasn’t at home. She had gone shopping. We use the past perfect continuous to show that something had been continuing up to a time in the past or was important at that time in the past: Everything was wet. It had been raining for hours. He was a wonderful guitarist. He had been playing ever since he was a teenager. We use will with the perfect to show that something will be complete at some time in the future: In a few years they will have discovered a cure for the common cold. I can come out tonight. I'll have finished my homework by then. We use would with the perfect to refer to something that did not happen in the past but would have happened if the conditions had been right: If you had asked me I would...
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...where one single supplier dominates an industry and sets price. We start our analysis of market structures by looking at perfect competition. Firms operate within their market, which consists of: Supply side: all of the firms producing similar products Demand side: all buyers willing to purchase the products Markets differ; the auto market is far different from the tomato market, for example. Thus economists separate markets into 4 categories: perfect competition, monopolistic competition, oligopoly, and monopoly. Perfect competition: There are many, many small sellers (technically, there must be an infinite number of sellers), each of whom produces an identical product. It is very easy for new sellers to enter this market, and it is easy for existing sellers to leave the market. Examples: There are no real world examples of perfectly competitive markets. The stock market comes close. 2.0 Analysis 2.1 Perfect competition Perfect competition describes a market structure whose assumptions are extremely strong and highly unlikely to exist in most real-time and real-world markets. The reality is that most markets are imperfectly competitive. Nonetheless, there is some value in understanding how price, output and equilibrium is established in both the short and the long run in a market that holds true to the tough assumptions of a world of perfect competition. Economists have become more interested in pure competition partly because of the rapid growth of e-commerce in...
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...Freedom By JEFFREY KATZ Wall Street Journal, June 7, 2012 http://online.wsj.com/article/SB10001424052702303830204577448792246251470.html Never is the issue concerning monopoly and perfect competitive market failing to attract our eyes. And this is also a hot topic we discussed in our economics course. According to the article, Google, the most popular search engine in the world, controls nearly 82% of the global search market and 98% of the mobile search market. Its annual revenue is larger than the economies of the world's 28 poorest countries combined. And its closest competitor, Bing, is so far behind in both market share and revenue that Google has become, effectively, a monopoly. A monopoly refers to a situation wherein there is a single seller of a product or service for which there are no close substitutes. A single company dominates its area; squeezes out all its competitors thus gaining control over the entire market and inevitably can dictate the price of the product or service. While in the perfect competition market, many firms produce identical products, and competition forces them all to sell at the market price. Firms face perfectly elastic demand curves at the price determined in the market because no firm is large enough to affect the market price. Compared with perfect competition, monopoly is inefficient. First of all, monopoly will create the deadweight loss for the market. A deadweight loss is a loss of economic efficiency that can occur when equilibrium...
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...Differences in the Market Structures In economics there are four main market structures: perfect competition, monopoly, monopolistic competition, and oligopoly. Each of these market structures faces the common factor of competition. Various degrees of competition are what separate these market structures. Secondly, the commodity or product plays a huge role in these market structures because some products have substitutes or identical products. Lastly, we will observe the barriers to which a firms face when entering or exiting the market. This is a very important factor in the market structures because relative difficulty in entry and exit of the markets will determine what type of market structure we are examining. Market structures are based on two extremes known as perfect competition and monopoly. Oligopolies lie in the middle of this spectrum. A comparison and contrast of each market structure in short term and long term scenarios will be detailed in the following paper. Perfect competition and Monopoly In a Perfect competition there are four conditions that characterize the perfect competition structure: a large number of buyers & sellers, free entry & exit, product homogeneity, and perfect information. Each of these aspects is compared when examining the differences between monopoly and perfect competition. First in perfect competition there are a large number of small firms. Perfectly competitive firms’ demand curves are perfectly elastic while a monopoly’s...
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...Strategy Simulation Individual Assignment Introduction There are four types of market categories used to classify pricing of product that are as follows: monopolistic competition, monopoly, oligopoly and perfect competition. The type of company and the amount of products being produced determines the market structure for any given company. Each market structure is used to help determine the pricing and non-pricing of the products. The economy in the US is very competitive with numerous of buyers and sellers. Monopolistic Competition According to McConnell & Brue (2004), the idea that each market has its own pricing method is known as a monopolistic competition. In this structure is there are several vendors, variety of products and an easily accessible industry. Each company has the ability to determine its own pricing and can make adjustments according to the sales threshold. However, these industries gain a small percentage of the market price and they will adjust their products to meet customer demand in order to remain profitable. The idea is to make the product more attractable than to make a profit. For instance, if Nike creates a fabulous running sneaker then Adidas will try to imitate and create fancier running sneaker to remain competitive and profitable. According to Wikinomics (2010), the industries in this market rely heavily on advertising in order to entice consumer to purchase their products. Another example of a monopolistic industry is the auto industry...
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...term used by economists to refer to the situation in which there is a single seller of a product (i.e., a good or service) for which there are no close substitutes. The word is derived from the Greek words monos (meaning one) and polein (meaning to sell). Governmental policy with regard to monopolies (e.g., permitting, prohibiting or regulating them) can have major effects not only on specific businesses and industries but also on the economy and society as a whole. Two Extreme Cases It can be useful when thinking about monopoly to look at two extreme cases. One is a pure monopoly, in which one company has complete control over the supply or sales of a product for which there are no good substitutes. The other is pure competition or perfect competition, a situation in which there are many sellers of identical, or virtually identical, products. There are various degrees of monopoly, and rarely does anything approaching pure monopoly exist. Thus, the term is generally used in a relative sense rather than an absolute one. For example, a company can still be considered a monopoly even if it faces competition from (1) a few relatively small scale suppliers of the same or similar product(s) or (2) somewhat different goods or services that can to some limited extent be substituted for the product(s) supplied by the monopolist. A business that produces multiple products can be considered a monopoly even if it has a monopoly with regard to only one of the products. A company with...
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...Introduction: Monopolistic competition is a type of imperfect competition such that many producers sell products that are differentiated from one another (e.g. by branding or quality) and hence are not perfect substitutes. In monopolistic competition, a firm takes the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms. In the presence of coercive government, monopolistic competition will fall into government-granted monopoly. Unlike perfect competition, the firm maintains spare capacity. Models of monopolistic competition are often used to model industries. Textbook examples of industries with market structures similar to monopolistic competition include restaurants, cereal, clothing, shoes, and service industries in large cities. Monopolistically competitive markets have the following characteristics: * There are many producers and many consumers in the market, and no business has total control over the market price. * Consumers perceive that there are non-price differences among the competitors' products. * There are few barriers to entry and exit. * Producers have a degree of control over price. The long-run characteristics of a monopolistically competitive market are almost the same as a perfectly competitive market. Two differences between the two are that monopolistic competition produces heterogeneous products and that monopolistic competition involves a great deal of non-price competition, which...
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...Re-Write in your own words Differentiating between Market Structures . ECO 365 March 7, 2016 Differentiating between Market Structures Swift Transportation Company Introduction The trucking industry in the US is an indispensable network service in the US as it is the most important carrier of freight. Nearly 70% of total freight movement in the US takes place through trucks (ATA, 2016). It consists of 3 million heavy duty trucks that carry around 9.2 billion tons of freight annually as per current statistics. A large number of big and small companies have their transport operating system in this industry. The market is segmented into two parts, the Truckload (TL) that carry full capacity load from one point to another and does not reload en route, and the Less-Than-Truckload (LTL) which consists of smaller carriers that carry less amount of load compared to TL and operates in the regional network (Parming, 2013). In this paper we are going to study the operations of the second biggest trucking company in the US, the Swift Transportation Company Inc., in terms of its market structure and related strategies. Brief Description of the Company The transportation company was founded in 1966 by Carl Moyes and his sons Jerry and Ronald in Phoenix Arizona (Reference for Business, 2016). Presently it operates in the USA, Mexico and Canada. It covers whole of USA and is the second largest trucking company in the US. It operates both in the TL and LTL segment. The company...
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...economic, technological, environmental, cultural, and demographical factors. This essay will explain various markets structures which are monopoly, oligopoly, perfect competition and monopolistic competition. The purpose of this paper is to discuss the impacts of different environmental factors on the business operations of Barclays. The discussion has been made in the light of international accepted microeconomics concepts and practices. Market structures Monopoly is a market structure, where only a single seller producing a product having no close substitutes. This single seller may be in the form of an individual owner or a single partnership or a Joint Stock Company. Such a single firm in market is called monopolist. Monopolist is price maker and has a control over the market supply of goods. On the other hand, Perfect competition a market structure characterized by a large number of firms so small relative to the overall size of the market, such that no single firm can affect the market price or quantity exchanged. Perfectly competitive firms are price takers. Moving on, in an oligopoly, there are only a few firms that make up an industry. This select group of firms has control over the price and, like a monopoly, an oligopoly has high barriers to entry. The products that the oligopolistic firms produce are often nearly identical and, therefore, the companies, which are competing for market share, are interdependent as a result of market forces. In addition, Monopolistic...
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...The conception tries to describe “Self – regulating nature of market” based on natural inclination of human-being. Unplanned, unintended actions coined with natural inclination of self-interest channels ambitions towards meeting social necessities. The main motto of the argument was that the market freely will lead to perfect equality. Actually, perfect competitive market fundamentalism was bulwarked with “Invisible hand”. It is very arguable and ambiguous that why Adam Smith called this sort of regulation “invisible hand”. Cognitively, it is tangible but in terms of understanding of special mechanism is very incomprehensible and too invisible to put forward as a market regulatory factor. Self-interest as a part of human nature took a role of supervisor and established “self-regulatory nature of marketplace”. Diving into deep comprehension of the term of invisible hand, we can see that the term implies decentralization of the wealth among inhabitants. We can face with the term of “invisible hand” in his previous work called “The Theory of Moral Sentiments” which envisages the natural propensity of human-being: “They are led by an invisible hand to make nearly the same distribution of the necessaries of life, which would have been made, had the earth been divided into equal portions among all its inhabitants, and thus without intending it, without knowing it, advance the interest of the society, and afford means to the multiplication of the species.”[i] It is obvious and absolute...
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...structures and comparing them to the structure and needs of Kudler Fine Food. The first market structure to be examined is perfect competition. Perfect competition is a theoretical perfect market structure, one which all other market structures are compared to. Under this structure all firms sell an identical product, are price takers, have relatively small market shares, have products and prices that are known by the buyers, are free to enter and exit the industry. This market structure is characterized by large numbers of organizations. Street vendors are a prime example for perfect competition, with the price elasticity of demand of this industries being so closely effective by the demand. The next market structure is a monopoly or a situation where a single company or corporation owns all or nearly all of the market for a given product or service. This means there is virtually no competition in the marketplace. Entry into a monopolistic market is fairly difficult due to highly protective regulations often enforces by these type of companies. Since there is typically only one company in this structure, the company is free to charge whatever they please for their products due to the fact that there is no competition to keep them honest. Companies operating in this structure, such as Microsoft, have a possibility of long-run economic profit, unlike that of perfect competition. In a monopolistic competition structure, there are relatively few barriers to entry. All companies within...
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...Competitive Markets Economy Competitive Markets Economy A market which converges all of below assumptions is called perfectly competitive market: ''Assumption 1. All the firms in the industry sell an identical or homogeneous product. Buyers of the product are well informed about the characteristics of the product being sold and the prices charged by each firm. Assumption2. The output of each firm, when it is producing at its minimum long-run average total cost, is a small fraction of the industry's total output. Assumption3. Each firm is a price-taker. This means that each firm can alter its output without significantly affecting the market price of its product. Assumption 4.Each firm must passively accept the existing market price, but it can sell as much as it wants at that price. Assumption5..There is freedom of entry and exit, which means that any new firm is free to enter the industry and start producing if it so wishes, and any existing firm is free to cease production and leave the industry. Marginal cost and marginal revenue in the perfectly competitive market where all firms operate under the same cost conditions, marginal cost is considered as the most important factor after price that affect the supply curve, and firms that cannot adopt the lowest cost methods of manufacturing are hard to maintain in this market. The goal therefore of all firms is to maximize their profits which increases as long as marginal revenue...
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...ECO/365 Market Structures There are four main types of market structures; perfect competition, monopoly, monopolistic competition and oligopoly. “ A perfectly competitive market is a market in which economic forces operate unimpeded”(Colander, 2010). There are a six different criteria that must be met in order for a market to be considered a perfect competition. Both buyers and sellers are price takers. The number of firms is large. There are no barriers to entry. Firms products are identical. There is complete information. Selling firms are profit-maximizing entrepreneurial firms. In order to understand what those requirements entail, a few terms need to be defined. Price-takers refers to “a firm or individual who takes the price determined by market supply given”(Colander, 2010). Barriers to entry can be many different things that prevent a firm from entering a particular market. They are usually social, political or economic obstructions, that prevent that entry. Perfect competition only really works in one marketable industry. Since all products are the same or identical, it really attracts the agricultural world. Cotton produced in Arizona and cotton produced in Australia are exactly the same. They come from the same seed. There is no real difference between the two different cottons, only that one was grown in Arizona and the other in Australia. The cotton will still cost the same. Perfect competition markets are profit-maximizing entrepreneurial firms. This means...
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...BY SHAHZAD MIRZA UKCBC PARK ROYAL LONDON ID: 12878-RB HND BUSINESS MANAGEMENT LECTURER: MR TAIWO OLAJUMOKE BATCH: 11 LEVEL: 4 BY SHAHZAD MIRZA UKCBC PARK ROYAL LONDON ID: 12878-RB HND BUSINESS MANAGEMENT LECTURER: MR TAIWO OLAJUMOKE BATCH: 11 LEVEL: 4 BUSINESS ENVIROMENT | Introduction | 3 | 1.1 | Identify the purpose of organisations | 3-4 | 1.2 | Describe to which extent Iceland Supermarket Ltd meets objectives of its different stakeholders. | 5-6 | 1.3 | Explain various responsibilities of Iceland | 7 | 2.1 | Different economic systems | 8-9 | 2.2 | Fiscal and monetary policy | 10-12 | 2.3 | Competition policy and other regulatory mechanism | 13-14 | 3.1 | Market structures determine the pricing and output decisions | 15-21 | 3.2 | Which market forces shape Iceland Supermarket responses | 21-22 | 3.3 | How the business and cultural environments shape the behaviour of Iceland | 22-23 | 4.1 | Significance of international trade to Iceland Supermarket | 23 | 4.2 | Impact of global factors on Iceland Supermarket | 24 | 4.3 | Impact of policies of the European Union on Iceland Supermarket | 25 | | Conclusion | 26 | | References “ | 27 | ...
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...Structure Market structure in economics is the quantity of organizations manufacturing duplicate products, which are similar as well in price. In the market, the performances of single organizations are critically swayed by market structure. Market structure consists of a Monopoly, Oligopoly, Monopolistic Competition, and Perfect Competition structure. These structures affect how market equilibrium is recognized. Monopoly: A monopoly is a firm that has no opponents in its business. It decreases output to increase revenue and increase profits. An example of monopoly is the U.S. Postal Services. Oligopoly: An oligopoly is an business with only a small number of organizations that can decrease the amount produced and increase revenues in the same manner a monopoly does. An example of Oligopoly is AT&T and T-Mobile. Monopolistic competition is an industry that covers numerous competing firms, which has a similar but somewhat different product. An example of monopolistic competition is wholesale retailers. Perfect Competition: Perfect competition: Perfect competition occurs the minute several small firms compete against each other. An example of a perfect competition is agricultural farms. History of Costco The entire history of Costco began with Sol Price and his son, Robert, opening the first Price Club warehouse on July 12, 1976 on Morena Boulevard in San Diego, California, thus giving birth to a very new concept: a retail warehouse club. The Price family placed Price...
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