Corporate Competition, Monopoly, And Monopoly

Rivalry: If barriers to leaving an industry are high, firms will exhibit greater rivalry and lower prices. High exit barrier forces firm to stay and compete for market share to survive and sustain..

Oligopolistic is a market structure which under the imperfect competition. According to Sloman & Garratt, oligopoly is only few large firms share a large portion of industry and control the market. When we hear that a term about “Big three”, “Big four” or “Big five” it can be set down as oligopolistic industry. In the oligopoly market competition, depends on the firms produce homogeneous or differentiated products and it will be categorize as homogeneous oligopoly or differentiated oligopoly. As Mcconell & Brue, 2008 stated because of the small number of firms, oligopolistic have worthy of consideration command over the prices and they have to think about their competitors conceivable reaction to their product`s price, product`s quality, advertising outlays and so on. The few large firms are interdependent but they have to always be awake of competitor`s action to maintain their firm can stand strong in the industries. Oligopolistic have a strong barriers of entry for the new competitors, which alike and dedicative by the pure monopoly. According to Jackson, Mclver & Wilson stated oligopolistic industries have a large economies of scale have to be consider for the new competitors because they must have a large amount of capital to invest heavy on the technology in the beginning, and this is the prevention of new competitors can easily enter to the industry. Furthermore, there are many industries are counted as oligopolistic for instance mining, steel, soft drinks, airlines,

Monopolistic competition is defined as, "a market structure in which many firms sell products that are similar but not identical" (Econ UIUC). The demand for monopolistically competitive firms is downward sloping. This is because there are free entry and exit within the market structure. Monopolistic competition exists in the short run and in the long run. In the long and short run firms want to produce where their marginal revenue is equal to their

To begin to understand monopolies, we have researched several things. Why do they exist? What do they do, in response to the economy? Although, we don’t see many monopolies now due to antitrust laws to prevent monopolies from forming, there are natural monopolies.

There are many characteristic of monopolistic competitions. One of such is that each firm makes independent decision regarding their product pricing and output based on the market and production cost. Each firm has the knowledge and ability to handle

Monopolistic competition is a market in which a very limited number of very large firms operate, selling similar products. The main difference between the products of the companies is packaging and display. In monopolistic competition, advertising plays an extraordinarily important role - the companies need to distinguish between each others products, and come out saying that theirs is worth purchasing. Another great power in monopolistic competition is a concept known as 'brand loyalty'. The consumer selects the brand that they prefer or appeals to them the most, and they always buy that over the competition. The best example of monopolistic competition would have to be Coke and Pepsi. Both companies release a similar beverage, both have their minor subtleties, and advertising

These regulations exist to ensure that natural monopolies are not charging consumers monopoly prices which in turn hurt the consumers as well as society as a whole. Industrial regulations affect the market by its regulation of the natural monopolies which in turn protects the markets consumers. These regulations also allow for a fair profit to the natural monopoly by setting a fair rate, protecting its consumers, but also a “fair return to the enterprises”. (McConnell & Brue, 2008, p. 382)

When understanding the different types f structures it is important to know the different types of markets that there are. Understanding barriers, buyers and sellers with knowing the market share and competition is important to understand what barriers are occurring in the market. The different market structures are Monopoly, Oligopoly, Monopolistic Competition, and Perfect Competition.

Monopolistic competition describes a marketplace offering differentiated products, and as such are not perfect substitutes. This is found in restaurants, shoes and other preference-driven goods. Such firms find a high elasticity of demand (in the long run), likely excess profits in the short term, and price

Monopolistic competition in the market structure has many businesses selling similar but none identical products with free entry into the industry businesses are competing against each other. The businesses in this industry have some control over the prices they charge but with none of the company’s being big enough to make a difference to the prices over the whole industry. Businesses must find themselves quickly in the market to know if they are going to profit or loose from their investment. Advantages for monopolistic competition in the market are with no entry barriers disadvantages for monopolistic competition it because they have some power over the market they can rise or lower their prices.

Monopolistic competition describes a marketplace offering differentiated products, and as such are not perfect substitutes. This is found in restaurants, shoes and other preference-driven goods. Such firms find a high elasticity of demand (in the long run), likely excess profits in the short term, and price setting available to them (as there are no perfect substitutes for their products; competitor prices are ignored).

The concept of monopoly relates to a situation where a large part of the market if not all, is controlled by one company or group of companies. Monopoly identifies with the market share ownership where one organization supplies a given product to the market in the absence of alternative or substitute suppliers (Trageks, 2010). The case scenario in this study presents a monopolistic market situation. The fact that Futures Unlimited Corporation is the single license owner approved to distribute and control plutonium presents a monopolistic situation. Monopolistic markets post different results on organizations depending on the company 's management decisions. Although many monopolies employ the single price strategy in ensuring the maximization of profits, the effectiveness of this model posits a question of fact. A single priced monopoly indicates that elasticity in demand affects a single price monopoly in such a way that increased prices lead to decreased consumption of the commodities. In this scenario, the monopolistic situation leads to the reduction of revenue as well as profits. A monopolistic organization will only make profits in the situation where marginal revenues exceed marginal costs. In the event a monopolistic market increases production where revenue equals costs, the company experiences decreased revenues as well as profitability. A single priced monopoly likely has a reducing effect on the company 's profitability with an extra output. However, the

The theory of pure competition is a theory that is built on four assumptions: (1.)There are many sellers and many buyers, none of which is large in relation to total sales or purchases. (2.) Each firm produces and sells a homogeneous product. (3.) Buyers and sellers have all relevant information about prices, product quality, sources of supply, and so forth. (4.) Firms have easy entry and exit.

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The main purpose of this report is to introduce four market structures – perfect competition, monopoly, monopolistic competition and oligopoly, and their determinations of price and output. It also discussed the possibility for firms to generate profits in the short-run and/or in the long-run within these four market structures. It will be shown in the discussion that both monopolistic and oligopolistic firms are able to generate profits in both short-run and long-run, while firms in perfect competition and monopolistic competition could only make profits in the short-run but not in the long-run. In the last section of the report, it provided a case of a Chinese monopolist in the railway service industry and talked about its pricing strategy when studying the monopolistic inelastic demand curve.