ECN104 QUIZ 1 PART 7

For questions #25-30, classify the following product markets in their respective industry structures using the appropriate letter for your answer. A.) Monopoly  B.) Oligopoly C.) Monopolistic competition  D.) Perfect competition  25.) Bottle water  26.) Wooden #2 pencils 27.) Cooper 28.) Local electricity service  29.) Peanut butter 30.) Lipstick

conomics 1.) Are Concentration Ratios Low, Moderate or High in a Monopolistic Competitive Market? Explain why its low, moderate or high. [Chapter 11 Oligopoly] 2.) Explain how Monopolistically Competitive Firms develop A.) Market Power and B.)Firm's Control over Price. Also, describe and explain The Shape of the Monopolistic Competitive Firm's Demand Curve. [Chapter 11 Oligopoly] 3.) Describe and explain how Oligopoly fırms behave when it comes to Rivals, Price Competition , Non-price competition (advertising , product differentiation and Brand Loyalty) and market share strategies. [Chapter 11 Oligopoly]

If this graph represents the market for Sonoran hotdogs in Tucson , which statement is true?     A The market is monopolistically competitive and at its long run equilibrium B The market is a monopoly and firms are earning positive profits C The market is an oligopoly and firms are earning positive profits D The market is perfectly competitive and firms are suffering losses E The market is monopolistically competitive and not at its long run equilibrium

Theory says that oligopolies should stick to the $500.00 price to maximize revenue (see the graph) Use the graph pictured to calculate total revenue in the elastic and inelastic portions of the demand curve at the price and quantity points specified to explain the theory.

Complete the following table by indicating key characteristics of each market structure. Market Structure Number of Firms Type of Product Entry Control of Price Monopoly                      Oligopoly                       Monopolistic Competition                     Perfect Competition                        For each of the following scenarios, determine which market structure best describes the scenario. Scenario Market Model Dozens of plain white socks producers use a widely known and readily available technology.      Scholastic Inc. is the only company with the U.S. copyright to a popular series of books.      Many small shops sell different styles of sweaters. Sweaters vary by price and quality.      Four Internet providers offer similar services. Any new company would have to engage in a price war with the existing companies.

Subject: Menagerial economics & policy Mcq's 7) Which of the following is not a characteristic of perfect competition                               a) Perfect information                               b) Homogenous goods                               c)A small number of firms                               d) Free entry and exit 8) A few firms dominating an industry is an example of                a) oligopoly                b) monopoly                c) monopolistic competition                d) None of the above 9) A market structure in which many firms sell products that are similar but not identical is known as               a)  monopolistic competition                b) monopoly                c) perfect competiion                d) oligopoly

Scenario: You have been invited for a job interview to Armenian Tobacco, a company producing and selling cigarette products in Armenia and abroad. Before going to interview you discussed it with your friends and you all agreed that the cigarettes' market structure can be considered as monopolistically competitive. Upon arriving to the interview you receive a short questionnaire, as follows: Armenian Tobacco is developing its strategy for the next few years, and among others we would like to know your opinion about the following points: 1) We would like to increase our advertising expenditures abroad as we believe it will enable us to gain more market share in our overseas operations. What is your opinion about advertising expenditures and their economic purpose? 2) There is a certain threat that in the future the World Health Organization will make all the countries to remove any labeling from cigarette boxes – all the boxes of all cigarettes area going to be the same without any…

What are the factors contributing to the rise of oligopolies and monopolies during the observation period in the article  "The Emergence of Oligopoly" by Eichner, Alfred S. (2019)

20. Market Model: There are hundreds of high school students in need of economics tutoring services. Dozens of companies offer tutoring services; parents view the quality of the tutoring at the different companies to be largely the same. * 5 (1 Point) Oligopoly Perfect Competition Oligopoly Monopolistic Competition Monopoly

There are two groups of firms below.   Group 1: firms in the retail sector (e.g. Amazon;  Wal-Mart; Target; Kohl's; Sears; Macy's) Group 2: firms in the wireless services industry (e.g. Verizon; AT & T; Sprint/T-Mobile) (this about telecommunication services, not about the sale of phones) For each group determine and explain if the group is monopolistic competitive or an oligopoly. You need to specific for both in which market structure the firms operate) Then choose one of the firms from one group.  Using a Porter's analysis what are the threat to profitability?

Question-4 (Duopoly) There are two firms in the pumpkin industry: C and S. The demand function for pumpkins is q = 3, 2001, 600p. The total number of pumpkins sold at the market is q =qc+qs, where qc is the number that C firm sells and qs is the number that S firm sells. The cost of producing pumpkins for either firm is $0.50 per pumpkin no matter how many pumpkins they produces. 1. Every spring, each of the firms decides how many pumpkins to grow. They both know the local demand function and they each know how many pumpkins were sold by the other firm last year. In fact, each firm assumes that the other firm will sell the same number this year as its sold last year. So, for example, if firm S sold 100 pumpkins last year, firm C believes that firm S will sell 100 pumpkins again this year. If firm S sold 100 pumpkins last year, what does firm C think the price of pumpkins will be if firm C sells 1,200 pumpkins this year? 2. Suppose that in year 1, firm C produced 200 pumpkins and firm S…

Business Economy Q1. Telecommunication (broadband) in Singapore, comparing each film (Singtel vs M1 vs Starhub vs others):Discuss the Structure-Conduct-Performance paradigm – how Market Structure (number of firms competing in an industry, relative size of firms (concentration), demand conditions (price elasticity of demand) and ease of firm exit or entry) of an industry affects the Conduct of firms (how individual firms behave in the market and involves pricing decisions and advertising decisions) and results in the firm’s Performance (profits and social welfare).

Evaluate the following statement: “Managers should specialize by acquiring only the tools needed to operate in a particular market structure. That is, managers should specialize in managing either a perfectly competitive, monopoly, monopolistically competitive, or oligopoly firm.”

Topic: Oligopoly Please answer the following questions (1,2&3) 1.) What are the implications of price leadership for the oligopoly market?    2.) Explain why firms might want to collude?   3.) Oligopolists often possess too much monopoly power. Evaluate whether governments should intervene in oligopolist markets.

The auto industry in the U.S. has long been dominated by the Big Three carmakers: Ford, General Motors, and Chrysler. The auto industry in China, on the other hand, has more than 170 carmakers. Automakers in the U.S. have some monopoly power while the car market in China has the characteristics of a perfectly competitive market. Based on these differences in market characteristics, explain how car makers in the U.S. will “behave” compared to carmakers in China. In particular, address the following considerations: How will carmakers in the U.S. respond to consumers’ desires compared to Chinese carmakers’ response to consumers’ desires, everything else being equal?

The auto industry in the U.S. has long been dominated by the Big Three carmakers: Ford, General Motors, and Chrysler. The auto industry in China, on the other hand, has more than 170 carmakers. Automakers in the U.S. have some monopoly power while the car market in China has the characteristics of a perfectly competitive market. Based on these differences in market characteristics, explain how car makers in the U.S. will “behave” compared to carmakers in China. In particular, address the following considerations: How will the profits of carmakers in the U.S. compare to the profits of carmakers in China, everything else being equal?

Question: Which of the following market structures is characterized by a large number of firms, homogeneous products, free entry and exit, and perfect information? a) Monopoly b) Oligopoly c) Monopolistic competition d) Perfect competition

The market structures influence how price and output decisions are made by the firms in their respective structure. In all market structures, one of the primary goals is to maximize profits or minimize losses. One of the major differences between these market structures is how price and output decisions are made, which in turn depends on the characteristics of each market structure. There are four market structures: 1. Perfect competition 2. Monopolistic competition 3. Oligopoly 4. Monopoly Discuss the differences among these four market structures.

Subject: Menagerial economics & policy Mcq's 8) A few firms dominating an industry is an example of                a) oligopoly                b) monopoly                c) monopolistic competition                d) None of the above 9) A market structure in which many firms sell products that are similar but not identical is known as               a)  monopolistic competition                b) monopoly                c) perfect competiion                d) oligopoly

Discuss the Duopoly Model with Product Differentiation, explain the effects of Product Differentiation and compare them with Homogeneous Goods Duopoly Competition. Try to find real life examples for such Duopolies and discuss relevant literature.

Economics: Industrial Economics Question: In a market that operates under quantity competition there are 2 firms (Cournot duopoly). The inverse demand function is P = A - B Q. The cost structure of firm 1 is given by C1(q1) = F1 + c1 q1 and that of firm 2 is given by C2(q2) = F2 + c2 q2. Prior to competing, the two firms can engage in research at levels (x1, x2) respectively in order to lower their marginal costs. As a result, marginal costs are c1 = c - x1 - β2x2 and c2= C - x2 - β1 X1. where β1 = β2 > ½. Finally, the research costs are F1 = a1 (x1)^2 /2 and F2 = a2 (x2)^2 /2, where a1 > 0 and a2> 0.   1. The Nash Equilibrium research levels are Choices: A. Higher than the cooperative research levels for both firms. B. Higher than cooperative research levels for firm 1 but lower for... C. Lower than the cooperative research levels for both firms. D. Higher than cooperative research levels for firm 2 but lower for...   2. An increase in the value of a2 would Choices: A.…

Question: Discuss reasons and conditions under which a monopoly or an oligopoly, despite its market power, might result in a better allocation of the economy's scarce resources than a purely competitive industry.

23. Market Model: Only three airlines fly from Jacksonville to Paris, France. No new airline will enter this market, because there are not enough customers to share among four or more airlines. Consumers view all airlines as providing basically the same service and will shop around for the lowest price. * 5 (1 Point) Oligopoly Perfect Competition Oligopoly Monopolistic Competition Monopoly

Subject: Manegerial economics & policy Mcq's 14) A petroleum industry is an example of                a) monopoly                b) Perfect Competition                c) oligopoly                d) monopolistic competition 15) Which of the following is an example of natural monopoly                a) vegetable markets                b) clothing retail shops                c) natural gas                d) None of the above

Case Study   Microsoft in India Microsoft made its name by building two monopolies, its Windows operating system and its Office suite of personal productivity software, that are used the world over. Windows, for example, runs on about 94 percent of the world’s personal computers. Despite its global dominance, however, Microsoft has found it difficult to get traction in many developing nations. India is a case in point. Although the country has a well-educated middle class, and although India is home to some of the world’s most successful information technology outsourcing companies, the vast majority of Indians do not have access to a personal computer. India has only 25 PCs per thousand people compared to 997 per thousand in the United States. The main reason for this is cost! Most Indians are simply too poor to afford a PC. Also, Microsoft’s Windows franchise faces two major competitors in India: pirated versions of Windows, and the free open source product Linux, which can be found…

Case Study Microsoft in India Microsoft made its name by building two monopolies, its Windows operating system and its Office suite of personal productivity software, that are used the world over. Windows, for example, runs on about 94 percent of the world’s personal computers. Despite its global dominance, however, Microsoft has found it difficult to get traction in many developing nations. India is a case in point. Although the country has a well-educated middle class, and although India is home to some of the world’s most successful information technology outsourcing companies, the vast majority of Indians do not have access to a personal computer. India has only 25 PCs per thousand people compared to 997 per thousand in the United States. The main reason for this is cost! Most Indians are simply too poor to afford a PC. Also, Microsoft’s Windows franchise faces two major competitors in India: pirated versions of Windows, and the free open source product Linux, which can be…

I need help describing these scenarios.

This assignment is designed to develop skills in collecting and assessing market information and presenting clear written communication about how market structure affects the conduct and performance of firms in an industry. Select one of the three oligopoly markets in Singapore: Telecommunications Supermarkets Ride-Hailing apps Your assignment should address the following questions: 1. 2. 3. How does the market structure (number of firms that compete in a market & relative size of the firms) affect the conduct or behaviour of firms in your chosen industry (price markups & amount spent on advertising) and their performance (profits)? Using one or more Oligopoly models (Sweezy, Cournot, Stackelberg, Bertrand), analyse how firms in your chosen industry make and respond to their competitors' output and pricing decisions. What are the pricing strategies (2nd degree, 3rd degree, Versioning, Bundling, Tying) that firms in your chosen industry implement, and discuss how…

Question 2 [Suppose 'Car Today' is the only firm selling cars in a small, rural town. Assume that people in the town do not want to leave the town to buy cars. Also assume that there is a constant marginal cost for 'Car Today'.] a) [What type of market structure do you think 'Car Today' belongs to? Why? Explain in 100 words or less. Market structure identified correctly with logical and sound explanation. b) [Draw a graph for Car Today that shows the firm carrying out perfect price discrimination (first degree). Label the producer surplus, consumer surplus, and deadweight loss in the graph. No explanation required Properly labelled, correct graph. Producer & consumer surplus and dead weight loss correctly identified and labelled on graph. c) [Now suppose the city council hears of Car Today's practices and outlaws price discrimination (and assume they can successfully enforce it). Draw a new graph showing what Car Today will do to maximize profits. Label the producer surplus, consumer…

E2 Conduct an analysis of market structures: Are perfectly competitive markets and their outcomes more preferred than monopolies? Compare the market structures and perfect competition and monopolies, and analyse the advantages and disadvantages of these market structures from the perspective of consumers, producers and a welfare maximising government.