Market Structure

2924 WordsNov 23, 200712 Pages
Forms of Industrial Organization, Market Structure, and Pricing Karl University MBA 501 Abstract The team will identify the four market structures, Pure Monopoly, Oligopoly, Monopolist Competition and Pure Competition in the forms of industrial organization. Pure Monopoly is one firm or company that controls the whole market whether there may not or may be substitutes. Oligopoly is a market dominated by a few large producers of a "homogeneous" or differentiated product. Monopolistic Competition consists of large number of sellers, with differentiated products making it easy to enter to and exit from the industry. Pure Competition is an economic model that describes a hypothetical market form in which no producer or…show more content…
This is not always the case when there are cost to run the business and shift in resources needed to maintain the business. "Faced with continuing losses, in the long run the firm 's owners will move their resources to alternative industries that offer better profit opportunities" (McConnell and Brue Chapter 24). "The businesses that comprise Trinity 's Energy Equipment Group manufacture structural wind towers, containers for the storage and transportation of liquefied gases and other liquid products, and tank heads. Trinity Structural Towers, Inc. is a leading U.S. manufacturer of structural wind towers. Trinity Containers, LLC is a leading producer of tank containers, storage tanks, spherical tanks, and several types of cylinders. Trinity Containers, LLC, using the brand name TATSA®, is the larges liquefied petroleum gas container manufacturer in Mexico" (Trinity Industries 2001). "The monopolist is engaged in price discrimination, the practice of selling a specific product at more than one price when the price differences are not justified by cost differences" (McConnell and Brue Chapter 24). Under these conditions, the monopolist can increase its profits by charging different prices to different buyers. Trinity must adhere to certain conditions in order to conduct the price. These conditions include monopoly power, market segregation, and no resale. A prime example of price discrimination occurs at the
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