which economic forces operate unimpeded. There are certain things a market must meet to be competitive the first being that both sellers and buyers are price takers, the second condition is there has to be a large number of firms, there must be no barriers to entry ,all the products from the firm’s must be identical and finaly there has to be complete information. A monopolistic competitive market is a market structure were firms sell products that are similar but not identical to one another. A couple
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threat of entry: This examines the threat of potential competitors as well as existing competitors. The threat of new entrants is based on the market entry barriers. These barriers can take a variety of forms and exist to prevent a surge of new firms into an industry whenever profits rise above zero. The most common forms of entry barriers (excluding legal and physical obstacles) are as follows: • Economies of scale: for example, the benefits of bulk purchasing • Cost of entry: for example, how
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threat of new entrants is usually based on the market entry barriers. They can take diverse forms and are used to prevent an influx of firms into an industry whenever profits, adjusted for the cost of capital, rise above zero. In contrast, entry barriers exist whenever it is difficult or not economically feasible for an outsider to replicate the incumbents’ position (Porter, 1980b; Sanderson, 1998) The most common forms of entry barriers, except intrinsic physical or legal obstacles, are as follows:
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threat of new entrants mainly due to high barriers of entry and economies of scale. For example, there are substantial capital requirements in construction of fixed facilities in strategic locations in order to distribute DVDs; there are also unrecoverable expenditures in up-front R&D and advertising costs, both of which are emphasized in order to differentiate service and build brand equity. There are also government policies to reinforce the barrier. For example, in addition to its red envelops
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and explain the most important sources of product differentiation and market entry barriers, within your chosen industry. It is recommended that you choose an imperfectly competitive market structure (for example, monopolistic competition, oligopoly, or monopoly) to consider within your assignment. The characteristics of each market structure, in terms of the extent of product differentiation and market entry barriers, are presented below:- Perfect competition • No product differentiation
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rivalry. The threat of entry: like any other attractive industry, the U.S. supermarket industry has a high barriers to entry that is the factors that need to overcome by new entrants if they are to compete in the industry. These barriers includes differentiation of products and services, legislation, expected retaliation, scale and experience and so forth. According to Porter, high barriers to entry is an advantage for incumbents relative to new entrants. Example of the actor would be Tesco (U.K
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market share & rivalry will intensify The position of existing firms is stronger if there are barriers to entering the market If barriers to entry are low then the threat of new entrants will be high, and vice versa Barriers to entry are, therefore, very important in determining the threat of new entrants. An industry can have one or more barriers. The following are common examples of successful barriers: Barrier Investment cost Notes High cost will deter entry High capital requirements might mean that
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1. Using the basic 5 step process for evaluating an opportunity, the following factors were analyzed when considering if Biodiesel is a viable opportunity. a. Capabilities: Although the team consists of Josh who has a business background, Hannah who has an agriculture economics background, and Matthew who is a mechanical engineer, the team is lacking a chemical engineering expert. b. Novelty: Although Biodiesel is a sustainable source of energy that can be easily integrated into the existing technology
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The economic case against monopoly * A profit-maximising firm will produce at the productively and allocatively efficient level of output in a perfectly competitive industry * The conventional argument against market power is that monopolists can earn abnormal (supernormal) profits at the expense of efficiency and the welfare of consumers and society. * The monopoly price is assumed to be higher than both marginal and average costs leading to a loss of allocative efficiency and a failure
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TECHNICAL UNIVERSITY OF KENYA DEPARTMENT OF CIVIL AND CONSTRUCTION ENGINEERING ENVIRONMENTAL ENGINEERING ASSIGNMENT 111/00502 SAMSON NYAMWEYA INSTRUCTOR: PROFESSOR THUMBI ASSIGNMENT: NOISE FROM CONSTRUCTION, CIVIL ENGINEERING WORKS AND ITS CONTROL Contents INTRODUCTION 3 MEASURES THAT CAN BE TAKEN TO CONTROL NOISE POLLUTION FROM CONSTRUCTION SITES. 4 Community notification 4 Operate plant in a quiet and efficient manner 4 Involve workers in minimizing noise 5 Handle complaints 5 Location
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