characteristics of an oligopolistic market structure. An oligopoly market structure can be differentiated from others because it has distinct features such as competition among a few firms, high concentration ratio and barriers to entry, non price competition, differentiated products and high level of interdependence between firms. The report also outlines and describes why the UK detergent industry which is dominated by a few firms reflects the model of an oligopoly. Several real life examples have
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CHAPTER 25 Monopolistic Competition and Oligopoly A. Short-Answer, Essays, and Problems 1. What are the major features of monopolistic competition compared to pure competition and pure monopoly? 2. “Pure competition or pure monopoly industries will tend to be one-price industries. Monopolistic competition, however, is a multiprice industry.” Explain. 3. How does economic rivalry take place in monopolistic competition? Describe the different aspects of
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Discuss factors affecting product pricing in the UK. Product pricing in the UK is dependent on several factors. Market structures such as monopoly and oligopoly play a major part in setting price. Market structures can then influence the objectives and behavior within a firm (Sloman & Wride, 2009). This can lead to the use of different pricing strategies, thus having varied effects on the level of price set. Traditional theory suggests that a firms’ main objective is profit maximization
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Evaluate the effectiveness of monopolistic competition and oligopolies in meeting the needs of producers and consumers. A market is a place where buyers and sellers meet to exchange money for goods and services. There are four market structures; perfect competition, monopolistic competition, oligopoly and monopoly. Each structure of market operates in their own ways with each with their own characteristics; each structure has its own number and size of the firms, the level of the competition,
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Date: 24 January 2010 Topic: Market Structure Written by Kevin Discuss whether this model of market structure (oligopoly) is the most appropriate to explain the behavior of firms in Singapore. [15] Firms’ behaviours can largely be explained by the market structures they exist in as the number of players in the market and the kind of goods would determine the behaviours of the firms. In Singapore, the firms that dominate the economy are largely service industries as well as global firms that are
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Oligopoly is a market structure in which a few firm dominate the industry, it is an industry with a 5 firm concentration ratio of greater than 50%. In Oligopoly, firms are interdependent; this means their decisions (price and output) depend upon how the other firms behave: •Barriers to entry are likely to be a feature of Oligopoly •There are different models to explain how firms may behave The kinked demand curve model suggest firms will be profit maxi misers. Kinked Demand Curve Diagram
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industry does this firm belong to? For example, McDonald's is a firm in the fast food industry. What market structure would this industry fall under? What are the names of other firms in this industry? Is it monopolistic competition, oligopoly, monopoly, or perfect competition? Justify your classification of the firm. Use the characteristics/features of the different market structure to determine which market structure to classify your chosen firm. Currently I receive cable and internet services through
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UNDERSTANDING MARKET STRUCTURES Bart Ford XECO 212 Jan. 15, 2012 Dr. Jill Trask Abstract Before someone can identify how to maximize profits in different market structures they must first understand how those markets operate and the characteristics of each. This paper will identify three market structures monopoly, oligopoly, and competitive structures and explain each in detail, as they pertain to maximizing profits, how price is determined for goods, how output of goods is determined
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but higher prices than perfect comeptition. We will get variety, but must pay for to get it. Besides advertising, we should expect give-aways, coupons, warranties, etc. Oligopoly 1. Few sellers 2. Same basic product, but much product differentiation. 3. Firms must price strategically 4. Difficult entry Oligopoly firms behave strategically: They consider not only the response of consumers to their actions, but also the response of other rival firms in the industry. Game Theory:
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different firms on a particular day in the STAR Magazine followed by categorizing them under their respective industry and eventually market structure. After sorting the data according to their market concentration, we see an inverted U-shaped curve, which increases as market concentration increases but eventually drops after it reaches its peak. The first market defined above, with zero concentration
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