Chapter 15, Problem 9QFR

What are the main factors that made Xiaomi a leading smartphone company in China and What do competitive reaction do you expect from Samsung and Apple globally?

Complete the following table by indicating key characteristics of each market structure. Market Structure Number of Firms Type of Product Entry Control of Price Monopoly                      Oligopoly                       Monopolistic Competition                     Perfect Competition                        For each of the following scenarios, determine which market structure best describes the scenario. Scenario Market Model Dozens of plain white socks producers use a widely known and readily available technology.      Scholastic Inc. is the only company with the U.S. copyright to a popular series of books.      Many small shops sell different styles of sweaters. Sweaters vary by price and quality.      Four Internet providers offer similar services. Any new company would have to engage in a price war with the existing companies.

Is it bad for consumers if a large corporation drives down prices to eliminate competition? Explain

The characteristics of perfect competition and imperfect competition (monopolistic competition, oligopoly, and monopoly).  Barriers to entry don't exist for perfect competition, but barriers to entry exist for imperfect competition.  What are the implications of barriers to entry to the firm and competition?   What happens to consumer surplus is price is above equilibrium, or in this case above normal profits?

Discuss it in your own understanding and then give example each of the following:   Tangible and Intangible Market Structure ( Perfect Competition,Monopoly Competition and Oligopoly Competition) Price and Production Local and National market Consumer and Producer goods Demands Law of demand Utility and Demand

Which one of the following market structure is the less competitive? a. Perfect competition b. Monopolistic competition c. Monopoly d. Oligopoly

You are the manager of an international firm headquartered in Antarctica. You are contemplating a business tactic that will permit your firm to raise prices and increase profits in the long run by eliminating one of your competitors. Do you think it would make economic sense to expend resources on legal counsel before implementing your strategy? Explain

Suppose that in a small town, the market for cement had five companies with market shares 0.3, 0.2, 0.2, 0.2, and 0.1. The following year, a new firm entered but the leading firm increased its share. Now the shares are 0.5, 0.1,0.1, 0.1, 0.1, and 0.1. Did the market become more competitive or less competitive?

Question: Discuss reasons and conditions under which a monopoly or an oligopoly, despite its market power, might result in a better allocation of the economy's scarce resources than a purely competitive industry.