Why The Irish Courts Despite Presiding Over 33 Convictions

• Tremendous price and wage competition in a recurring industry will lead to additional losses in profits.

Both potential and existing competitors influence average industry profitability. The threat of new entrants is usually based on the market entry barriers. They can take diverse forms and are used to prevent an influx of firms into an industry whenever profits, adjusted for the cost of capital, rise above zero. In contrast, entry barriers exist whenever it is difficult or not economically feasible for an outsider to replicate the incumbents’ position (Porter, 1980b; Sanderson, 1998) The most common forms of entry barriers, except intrinsic physical or legal obstacles, are as follows:

5. Suggest three (3) reasons a monopoly may or may not be efficient in any economy.

Businesses are not only faced with competition within the industry they operate in. They also face competition from businesses in other industries.

In general, the level of competition in an industry increases with the number of firms in the industry. If all firms in an industry are small in size, relative to the size of the industry, it is a fragmented industry. If a small number of firms controls a large share of the industry’s output or sales, it is a consolidated industry.

The third chapter included many different economic principles. These principles include fixed and variable costs of production, supply, demand, and equilibrium price, the effect of technological change on the market for goods and services, conflicting incentives, and the formation and operation of a regional monopoly. In the capitalist society that we live in, competition will drive down the price of goods. If too many people are starting to join a gang and sell drugs, then there are more drug dealers to compete with for business, resulting in a decrease in profits for each dealer.

Monopolistic competition and Oligopoly are considered imperfectly competitive markets that are a result of few to many firms offering differentiated products. Differentiation of products impede substitution, which allow producers to earn higher than normal profits and thereby enhance shareholder wealth (Byrd, J., Hickman, K., & McPherson, M., 2013). Oligopolies are highly interdependent, with actions of one firm will resulting in a reaction from another. The interdependence results in higher efficiency as a necessity to compete with rivals. According to Claessens "greater development, lower costs, enhanced efficiency and a greater and wider supply resulting from competition will lead to greater [financial] access (2009).

This results in unused capacity and stronger competition. Therefore it might be difficult for the smaller companies to survive.

8. Compared to a perfectly competitive industry with the same demand and cost curves, a monopoly’s price and output will be which of the following?

The calculation and imposition of a fine which using turnover as a determinant for setting such fine is likely to lead to the imposition of a fine which is disproportional and unjust in comparison to the misconduct. An argument for a new approach to the imposition of fines – base it on gain and financial capacity over the entire period of the breach. Pursuant to economic analysis, one option would be to significantly increase the maximum level of fines, removing the 10% ceiling, up to around 50%, as the actual level of fines currently imposed is not sufficient in deterring cartel and competition offences. This, however, is unlikely to happen as such fines would be disproportionate and detrimental to market welfare. Instead it is suggested that criminalisation could enhance the effectiveness of administrative fines in the absence of increased fines in an EU context, and individual sanctions could be the appropriate solution for

Existing Competitors. Rivalry among competitors within an industry use price discounting, new products, marketing, and other techniques to be competitive. Profitability of an industry suffers from high rivalry. The intensity with which companies compete and the basis on which they compete determine to which degree rivalry brings down an industry’s profitability (Porter, 2008). Pure competition is considered by economists as a competition with a high

Competition failure or monopoly may result from natural monopoly where it costs incurred in production becomes lower when only one firm is involved in production than several firms producing the same output. In a monopolist market under-production, higher prices become dominant contributing to market inefficiency. Winston cites cases of misuse of monopoly power can lead to market failures and sometimes may lead to acute shortage of essential commodities (130).

If an industry is profitable, it will become a magnet to attract more competitors looking to do same business with us. If it is easy for these new entrants to enter the market, this poses a threat to the firms already competing in that market. Threat of new entrants is one of the forces that shape the competitive structure of an industry (Marc, 2014). A high threat of entry means new competitors are attracted by the profits of the industry and can enter the industry easily. New competitors entering the marketplace can make the market share and profitability of existing competitors more threaten cause the existing competitor to make some changes to existing product quality or price levels. A high threat of new entrance can make an industry more competitive and decrease profit potential for existing competitors whereas a low high threat of new entrance can make an industry less competitive and increases profit potential for the existing

Competition: As time goes on firms drop out until no one is producing the product.

The trade flows (both exports and imports) decline thus leading to higher prices and reduction of customer marginal benefit. The profit-seeking firms choose to produce where the price is equivalent to the marginal cost of the last produced unit and when government measures affect their decision to produce. The interventions that lower the marginal costs of production such as subsidies will lead to increase in production (Kerr and Gaisford 2007).