Unit 5 Assignment Student Name: Please answer the following questions. Submit as a Microsoft Word® document to the Dropbox when completed. 1. Do the firms in an oligopoly act independently or interdependently? Explain your answer. Firms in an oligopoly act interdependently because the demand for one firms output depends on the actions of its rival firms and this makes the decisions making difficult regarding price and output levels. 2. A monopolistically competitive
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intended purpose of industrial regulation as it applies to the following market structures: An oligopoly is a market form in which a market or industry is dominated by a small number of sellers. An oligopoly has the ability to determine its own price and output. (McConnell 164) Industrial regulation is used to reduce the market power of monopolies. It’s also used to reduce the market power of oligopolies, prevent
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issues according to those articles. Market structures are fundamental in understanding how the economy works and how goods and/or services are exchanged. There are four basic market structures; perfect competition, monopolistic competition, oligopoly, and monopoly. Perfect competition is when there are numerous sellers with no difference in the product, no cost to enter or exit the market, and there is no influence on price. The most common type of market structure is a monopolistic competition
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as, Medicare and or Medicaid can only receive healthcare under restrictive circumstances, usually only thorough emergency room visits. The market for health care insurance is dominated by a few major firms, therefore the market is exhibiting an oligopoly market structure. Only a few firms are dominate within the industry, for example Blue Cross, Etna, and Kaiser but it is relatively easy for smaller firms to
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processes of management have been described in different market structures and the use of economic tools making managerial decisions becomes vital throughout the simulation. Quasar’s product lifecycle is reviewed through the phases of Monopoly, Oligopoly, Monopolistic Competition and finally Perfect Competition. Each decision that is made provides instant results and how this directly affects the product. Monopoly Grant (2010) defines that a monopoly exists when an organization is protected
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Strategy Simulation Game Name: University: Course: Section: Instructor: Date: Table of Contents Introduction 2 Pure Monopoly 2 Oligopoly 3 Monopolistic Competition 4 Perfect Competition 4 Relation with Porter's Five Force Model 4 Conclusion 6 References 7 Strategy Simulation Game Introduction This paper explains the use of economics in managerial decision making based on the simulation. It describes decision making process of management in different market structures. The main objective
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If companies decide to export or import, increase taxes which would possibly stop sending jobs overseas. Discuss how supply and demand would be affected under each of the four degrees of competition (pure competition, monopolistic competition, oligopoly, and monopoly). Give specific examples to support your response. Supply refers to the quantity of products that producers are willing to offer for sale at different market prices. These businesses are seeking to make as much profit as possible
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In monopoly markets, the leading firm can also experience prolonged supernormal profits as there is no competition, but the pharmaceutical industry is actually an oligopoly. As of 2013, the leading pharmaceutical manufacturer was Pfizer, with just 9.9% market share. This means that the pharmaceutical industry is more of an oligopoly. Firms are still able to experience supernormal profits despite the higher level of competition. Pfizer for example, would be able to patent new production techniques
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paper I will present a business proposal for the iPhone addressing the market structure and the elasticity of demand for the phone. Market Structure The Apple smartphone is part of an Oligopoly market; an independent market and has its own behaviors strategies. According to McConnell, Brue, and Flynn (2009), “Oligopoly, in contrast, blends a large amount of monopoly power, a small amount of competition through entry, and considerable rivalry among industry firms” (p. 222). Because Apple’s smartphone
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I. Introduction Trung Nguyen was established in 1996. At first, it as a fledgling brand in Vietnam and after that, they have created their reputation and familiar brand name to both customers at home and abroad. Over the past 10 years, from a small coffee company in Bon Me Thuot, Trung Nguyen has developed as a powerful corporation with 6 member companies with the major industries include manufacturing and trading tea and coffee, franchise and distribution services, modern retail stores. With their
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