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product differentiation
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economies of scale
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patents and licenses
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exclusive control of a raw material
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advertising
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- Which of the following do not qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions? 1.Reductions in both supplier and buyer bargaining power and higher barriers to entry into the industry 2. Reductions in uncertainty and business risk, changes in who buys the product and how they use it, and diffusion of technical know-how across more companies and more countries 3. Changes in an industry's long-term growth rate and changes in cost and efficiency 4. Entry or exit of major firms, government policy changes and/or regulatory influences 5. Growing buyer preferences for a more standardized product instead of strongly differentiated products (or for a more differentiated product instead of nearly identical or weakly differentiated products.“Government regulation came to the electricity industry because of economies of scale, which seemed so great that monopoly organization could offer cost advantages.” Based on above quote, discuss THREE (3) main functions of the electric power industry.TRUE AND FALSE QUESTIONS According to para 3 of article 12 of TCC a person who pretends that he/she runs a commercial enterprise or who enters into contracts as if he/she is a shareholder of a company which does not exist legally is qualified as a merchant. Article 16 of TCC refers to legal person merchants under three groups. Legal person merchants identified under article 16 are numerus clauses. Where there are no applicable regulations for the disputes as to commercial transaction, commercial usage and custom find an application even if merchants do not actually know them Although a legal representative who operates the commercial enterprise on behalf of the minor does not have a status of merchant, he is eligible to appoint a commercial representative Regarding the authorization of the commercial representative, apart from that the authorization of the representative is registered with the commercial register (art. 547/2 of TCO), there is no formal requirement. Commercial…
- Government regulation of early American monopolies was initially absent. However, the creation of antitrust regulation in the United States, in the form of the 1890 Sherman Antitrust Act, led to the eventual dismantling and restructuring of Standard Oil and American Tobacco by 1911. Like many antitrust cases brought against companies even today, it took several years for these first cases to navigate through the court system Unlike Standard Oil and American Tobacco, U.S. Steel was challenged, but not found to be the sole supplier of steel to the U.S. market. However, it continued to possess considerable market share for many years. In 2018, U.S. Steel was the 26th-largest producer of steel in the world, according to the World Steel Association. More Modern Times A more recent monopoly to have experienced the same fate as Standard Oil and American Tobacco is the American Telephone and Telegraph Company (AT&T). In 1982, AT&T was found to be in violation of U.S. antitrust law…A possible advantage of a horizontal merger for the economy is that the merging firms could avoid losses. the merged firm might reap economies of scale which could translate into lower prices. the degree of competition in the industry will be intensified. the government stands to collect more corporate income tax revenue.All of the following are strategies a firm with market power can adopt to increase its profits over time except: Influencing the regulatory process. Erecting barriers to entry. Setting price equal to the marginal costs of production. Mergers with, and acquisitions of, competing firms.
- McDonald’s Global Compensation Practices: This feature explores McDonald’s efforts to develop a global compensation and performance appraisal strategy. McDonald’s, which has over 400,000 managers and senior employees working in 118 different countries, wants its new program to provide some standardization of compensation and performance appraisal for the firm, but at the same time, allow subsidiaries to tailor the program to local market conditions. Discussion Questions 1. What does McDonald’s hope to gain from having a global compensation and performance appraisal system in place? 2. How does the compensation and performance appraisal system introduced at McDonald’s allow managers to take local market differences into account? Why is this type of approach important to employees? 3. How does McDonald’s approach help the company to consider local differences when reviewing the performance of different country managers and awarding bonus pay?Competition and big tech firmsBig tech firms in digital markets are at the forefront of the public policy debate because of the central role they play in today's economy and society. A small number of firms dominate their respective markets, from online retailing to operating systems and from social networking to online search. These concentrations of economic power, along with concerns about anti-competitive conduct, have focused a lot of attention on these digital giants. Several of these firms have recently been or are currently under investigation by antitrust authorities in the USA, China and the European Union.Choose one or two of these markets and describe the alleged problems facing competition. Is high concentration leading to high profits and harming consumers and social welfare or are these firms dominant because they are efficient and provide good value to consumers? What are the most appropriate policy responses?A good selection of academic articles was published in a…Competition and big tech firms Big tech firms in digital markets are at the forefront of the public policy debate because of the central role they play in today's economy and society. A small number of firms dominate their respective markets, from online retailing to operating systems and from social networking to online search. These concentrations of economic power, along with concerns about anti-competitive conduct, have focused a lot of attention on these digital giants. Several of these firms have recently been or are currently under investigation by antitrust authorities in the USA, China and the European Union. Choose one or two of these markets and describe the alleged problems facing competition. Is high concentration leading to high profits and harming consumers and social welfare or are these firms dominant because they are efficient and provide good value to consumers? What are the most appropriate policy responses? A good selection of academic articles was published in a…
- Another solution for antibiotic resistance is the development of new drugs that defeat resistant bacteria. Such research and development has a high fixed cost and can only be undertaken in industries with high market concentration where firms have significant monopoly power, like the pharmaceutical industry. Examine this industry using the theory and models of industry structure. Should government be worried about any aspect of how an industry with this market structure will perform?Bags Fly Free” Campaign Discussion Question - CLO 1, 2 Southwest Airlines begins a “Bags Fly Free” campaign, charging no fees for the first and second checked bags. Does this situation best represent producer–producer rivalry, consumer–consumer rivalry, or consumer–producer rivalry? Discussion Question Information: Answer all questions thoroughly. When posting peer responses, elevate your peers by asking probing questions that encourage your peers to engage in a more meaningful and deeper manner or by presenting additional ideas from research. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Choose the most appropriate answer. 1.1 Read the following extract and answer question 1.1, 1.2. Evidence of dominationBoth the Competition Commission and Icasa found, in their inquiries, that Vodacom and MTN are dominantacross the supply chain. Their dominance is even more entrenched by the spectrum-sharing deals that they haveentered into with Cell C, Liquid Intelligent Technologies and Rain. Cell C is wholly reliant on MTN and Vodacomto provide mobile services, and Liquid and Rain are disincentivised from competing aggressively in the mobilemarket due to the lucrative deals they have struck to provide capacity to either Vodacom or MTN, or both. Thishas limited their ability to compete independently – leaving Telkom as the only entity in the position to be able tochallenge the “cosy” market structure head-on.Source: https://techcentral.co.za/mcleod-is-wrong-about-telkom/110373/Accessed: 19/08/21 The economic argument being expressed in this extract is that of __________ and has the…
