[pic] An organization does not need any strategy if it is not in a competitive situation TETA-2607 Strategic Management • Do you agree with the claim and what grounds can you provide to support your stance? • Can an organization ever be in such a situation in which it does not encounter any competition whatsoever? | | | |TABLE ON CONTENTS
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Maximizing Profits in Market Structures XECO/212 Principles of Economics Maximizing Profits in Market Structures There are several types of market structures that influence the goods consumers buy and at what price is set for each good. There are three main market structures which are the competitive markets, monopolies, and oligopolies. Each of which has unique characteristics that determine what role each will play in an economy. The different ways price and output effect maximizing
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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
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examples, discuss critically the costs and benefits of monopoly in modern economies. Richard Itaman Student Name: Allegra Campinoti Student ID: 628548 Word Count: 2100 Monopoly is defined as “a market served by a single seller of a product with no close substitutes.” (388 ,Frank and Parker 2007) For a monopoly to be successful there can’t be any close substitutes that are able to provide a similar product or service the firm is offering. Monopoly can be formed if one or more combinations of five
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increase profits by decreasing output. A profit-maximizing firm decides to shut down in the short run when price is less than average variable cost. In the long run, a firm will exit a market when price is less than average total cost. 3. In the long run, with free entry and exit, the price in the market is equal to both a firm’s marginal cost and its average total cost, as Figure 1 shows. The firm chooses its quantity so that marginal cost equals price; doing so ensures that the firm is maximizing
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antitrust behavior (firms having power in the market). Additionally, note the specific antitrust act (Sherman Act, Clayton Act, etc.) under which the violation was investigated. Given your research and findings, are monopolies and oligopolies (firms demonstrating power) always bad for society? Be sure to provide real world examples of where this may be the case to strengthen your position. Provide at least one example of a case where having a monopoly or oligopoly may actually benefit the society
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There are 4 markets structures in which firms operate: pure competition, pure monopoly, monopolistic competition, and oligopoly. Pure Competition is an economic model that describes a hypothetical market form in which no producer or consumer has the market power to influence prices. Pure Monopoly is one firm or company that controls the whole market whether there may not or may be substitutes. Monopolistic Competition consists of large number of sellers, with differentiated products making it easy
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Market Structure is defined as the number of firms producing identical products which are homogeneous. In other words, it is the factors that influence the interaction of buyers and sellers in a market, and also determines changes in price by how different levels of production and selling processes interact together. Market structures are important both to firms and consumers alike, because it influences how they (firms and consumers operating within the market or industry) behave in terms of
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Monopoly The central theory in all of the profit-maximizing outcomes rests on the idea that marginal revenue should equal marginal cost. The same is true in the case of a firm with monopoly power. Before we discuss the profit-maximizing outcomes, it is important to understand what is meant by monopoly and how does it affect revenues and costs. A firm has a monopoly if it is the only supplier in the industry of that particular product or products. Moreover there are no close substitutes
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Anti-Trust Law and Monopoly; Restraint of Trade Anti-trust laws encourage competition by “leveling the playing field”. These laws are intended to prevent large companies who have already established themselves from using their size and leverage to prevent competitors from entering their markets. The Sherman Act addresses unfair strategies in two different ways: Section 1 forbids restraint of trade and Section 2 forbids the misuse of monopoly power. Section 1 requires two or more persons conspiring
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