Learning Team Reflection ECO/365 Learning Team Reflection Week three with its emphasis on market structure provided some areas of greater understanding than the previous week's focus on production and cost analysis. The topics of comfort increased and it seemed that more of the team members agreed with their areas of understanding. While some of the topics did provide a mild amount of difficulties in understanding, it certainly can be seen how the subject matter learned through the team paper
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Differentiating Between Market Structures Don Peterson ECO/365 February 2, 2015 Elena Zee Differentiating Between Market Structures A market structure in economics describes the state of a market with respect to its competition. There exist several different market structures like perfect competition, oligopoly, and monopolies among others. These markets all produce different types of goods or services, like public and private goods as well as common and collective goods. Firms operating
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strategy for a monopoly enterprise to obtain excessive profits through the difference in price. In a perfectly competitive market, all consumers pay the same price for homogeneous products. If consumers have sufficient economic knowledge, then the difference of price on each fixed quality product will not exist because any seller who attempts to ask a price which is higher than the current market price will find that nobody would buy the product from him or her. However, in a monopoly or oligopoly
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practice price discrimination, if, it has a monopoly in the domestic market, but faces perfect competition in the international market for his product. Here, the monopolist sells his product at a higher price in the home market and at a very low price in the foreign market. This is called dumping, as the firm virtually dumps his product at a very low price in the foreign market, wherein it feces perfectly elastic demand curve. The price in the foreign market may even be lower than the average cost of
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profit maximization. Firms exit the industry if they fail to pass the survival test of making nonnegative wealth. Industry converges in probability to the monopolistically competitive equilibrium as the size of each firm becomes small relative to the market, as the entry cost becomes sufficiently small, and as time gets sufficiently large. Consequently, in the limit, the only surviving firms are those producing at the tangency of the demand curve to the average cost curve and no potential entrant can make
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PRIVATISATION Definition of Privatisation Privatisation means inducing private ownership, management and control into public sector undertakings. It is opposite of nationalising private firms. It implies disinvestment in public sector units and passing of management rights to private entrepreneurs. In some cases the management and control of public undertakings may be transferred to private sector without transferring the ownership. Importance of Privatisation * Improvement in efficiency:
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competitive manner by breaking up companies that are monopolies, prohibiting mergers that would increase market power, and finding and fining companies that collude to establish higher prices. The principal federal statutes are The Sherman Act, The Clayton Act (1914) and The Federal Trade Commission Act (1914). The Sherman Act pertains to the reality of monopoly and restraints of trade and to the process of obtaining or maintaining a monopoly. The Clayton Act goes further by addressing potentially
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US, CN gained trackage in central US from Great Lakes to the Gulf of Mexico. The company was established in 1918 and has grown into largest company in transportation railroad industry in the country with almost 22 000 employees in US and Canada and market capitalization of 32 billion dollars. Based on results at the end of 2010 CN has one of the lowest operating ratio of 63.6%. Canadian National Railway s offers to its customers shipping services of cargo loads across North America. Clients are able
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that the labor market is competitive, so that marginal resource cost equals the market wage. a. (4 points) Now suppose this firm is in a perfectly competitive market and that the market price is $2. What is the marginal revenue product of the 2nd hour of labor? Briefly explain your answer. b. (6 points) If the market wage is $10, how many hours of labor should this firm hire to maximize profit? Briefly explain your answer. c. (6 points) Now suppose that the firm has market power and that
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Running Head: MARKET STRUCTURES Meritus University Market Structures Heinz ketchup is the leading producer of ketchup, worldwide. They have very few direct competitors, and as a result I would consider the market structure of ketchup to be an oligopoly. This paper will help to show the implications of how this market structure has on pricing Heinz ketchup. It will also cover non-price strategies to preserve sales
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