Investigate the Behaviour of Organisations and the Market Environment

Perfect competition is an idealised market structure theory used in economics to show the market under a high degree of competition given certain conditions. This essay aims to outline the assumptions and distinctive features that form the perfectly competitive model and how this model can be used to explain short term and long term behaviour of a perfectly competitive firm aiming to maximise profits and the implications of enhancing these profits further.

3a. Under the circumstance that other conditions do not vary, the quantity demanded of one good will increase with the declining price of this good; the quantity demanded of one good will decrease with the rising price of this good.

Competition being one of the major issues that often must be addressed in the business world, it is important for a firm to learn on ways to reduce the impact of the competition. Competition is definitely an important factor in helping a business

Perfect competition is one degree of competition that a company and its competitor may try and compete in because it is considered relatively small in the private enterprise sector of a business. There are conditions that must be met in order for perfect competition to happen they are: all firms in the industry must be small, and the number of firms in the industry must be large.

Competition is important because without it there would be no market place. The ability to compete against another firm and or company has a major impact on the economy, if there is only one company in the market place that is offering a product or service then that company can charge whatever price it deems to be reasonable to the customers. The product and or service may not meet the customer’s expectation

Monopolies are always known to hold a limited amount of control over its particular market and that gives them the dominant ability to control the prices for its goods or services, or in other words, they represent the market. They indeed have detrimental effects on consumer and social welfare, which is why most do not agree with them. This paper is an attempt to address the various points of monopolies in a society of competition.

The law of demand is the quantity of a good demanded per period of time, will fall as price rises and will rise as price falls, this suggests that other factors remain the same, ceteris paribus

The assignment for this week was to review the video which discusses the four types of markets: perfect competition, monopolistic competition, oligopoly, and monopoly. In order to review this effectively there must be an understanding of the terms. According to our text, perfect competition involves products competing clients and that they offer corporations less potential profits than imperfectly competitive markets do. (Bryd, Hickman and McPheson, ) The text also referenced imperfect competition and this is when entry is restricted or goods are differentiated. (Bryd, Hickman and McPheson, ) Monopolistic competition, oligopoly, and monopoly according to research are deemed as imperfect competition. Monopolistic competition is considered imperfect because there are a lot of producers sell products that are distinquished from each other and there are not feasible substitutes. The oligopoly is a when there are many small companied that take up a large part of the market share. It is close to a monopoly but it is more than one company. A monopoly is normally one company that controls almost all of the market.

Describe each market structure discussed in the course (perfect competition, monopolistic competition, oligopoly, and monopoly) and discuss two of the market characteristics of each market structure.

There are many key structures to marketing. These marketing structures are used by many major corporations and at times are taken advantage. I will be discussing four of these market structures, which are perfect competition, monopolistic competition, oligopoly, and monopoly. Understanding these marketing structures and making it work for a company to grow also produce for their customers.

This first subject will be covering the different structures of the market and how they differ in the capitol economy. These are to include: monopoly, oligopoly, monopolistic competition, and the perfect competition. Each of these structures will be broken down into how they fit and which is the preferred method in product

Perfect competition: in this competition, no participant dominates the market thus; no specific seller has the power to set the prices of homogeneous goods. This therefore makes the conditions of a perfect competitive market stricter than the rest of the market structures. In this market, AT&T should be willing to sell their services in a certain price that reciprocates to their demand to maximize profits.

There are four theoretical constructions relating to market structures, these are oligopoly, monopoly, perfect competition and monopolistic competition. Each theory has its individual assumptions and norms. In turn, these theories will be analysed, compared and contrasted with real life examples. The market structure related to each business reflects the profit maximisation and productions of the firms. The demand curve will also vary depending on the market structure; MC=MR.

The connection between characteristics of a market, such as the number and strength of buyers and sellers, severity of complicity amid them, as well as the levels of competition and contrast of product and ease of entry and exit barriers determines the type of market structure. Perfect competition, monopoly, oligopoly and monopolistic competition are four basic market structures. Economists watch the different market structures in an attempt to predict consumer behavior. “Firms use markets to achieve sales and profit goals while consumers use markets to reach various consumption goals” (Redmond, 2013, pg. 433). Evaluating each structure will help in assisting firms with decision making to better understand competition and consumer

A market consists of all potential customers sharing particular need/ want who may be willing and able to engage in exchange to satisfy need/ want.