Preview

Differentiating Between Market Structures Research Paper

Better Essays
Open Document
Open Document
1097 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Differentiating Between Market Structures Research Paper
Differentiating Between Market Structures
ECO 365
April 6, 2014
Differentiating Between Market Structures
Market structure is the state of the market with respect to its competition. There are several different market structures such as perfect competition, monopolies, and oligopoly. An industry consists of all firms making similar or identical products. Economists assume that there are a number of different buyers and sellers in the marketplace (Heakal, 2014). In some industries, there are no substitutes and there is no competition. In a market that has only one or few suppliers of a good or service, the producer(s) can control price, meaning that a consumer does not have choice, cannot maximize his or her total utility and has have very little influence over the price of goods. This will lead to a competition in the market, which allows price to change in response to changes in supply and demand. For almost every product there are substitutes, so if one product becomes too expensive, a buyer can choose a cheaper substitute instead (Heakal, 2014). According to the Fortune Global 500 list Walmart is the biggest private employer in the world with over two million employees. It remains a family owned business controlled by the Walton family, who own over 50 percent of Walmart. …show more content…
References
Heakal, R. (2014, May). Economics Basics: Monopolies, Oligopolies and Perfect Competition. Retrieved from http://www.investopedia.com/university/economics/economics6.asp
Walmart: Keys to Successful Supply Chain Management. (2014, April). Retrieved from http://www.usanfranonline.com/resources/supply-chain-management/walmart-keys-to-successful-supply-chain-management/#.U0SQTvldWSo
What is a Market Challenger. (April, 2014). Retrieved from
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Differentiating Between Market Structures in Kudler
    • 1030 Words
    • 5 Pages

    Differentiating Between Market Structures in Kudler

    “Kudler Fine Foods was established in 1998 when Kathy Kudler fulfilled her vision of establishing her own gourmet food store. The La Jolla store continues to grow while the Del Mar store has been having some difficulties. The store in Encinitas has just opened, but sales seem brisk.” (Apollo, 2011, Strategic Plan, p. 3) The owner works 7 days a week and performs many jobs from purchasing to stocking shelves. Kudler Fine Foods sees itself outside of competition.…

    • 1030 Words
    • 5 Pages
    Good Essays
    Read More
  • Better Essays

    Eco 365 Uop Differentiating Between Market Structures Essay Example
    • 1036 Words
    • 5 Pages

    Eco 365 Uop Differentiating Between Market Structures Essay Example

    Kudler Fine Foods is the brain child of Kathy Kudler. She envisioned a one stop gourmet food store and has grown to three locations to date. She continues to maintain direct control over large bulk purchase order items, stringent customer service policies, and hiring. This paper discusses how the organization competes in the marketplace and the strengths and weaknesses of the company according to the marketing surveys their customers completed. The following also discusses which market structure best applies to the organization and how that structure positively and negatively affects the firm, how the effectiveness of the competitive strategies in the market structure affect the organization’s long-term profitability, and what competitive strategy recommendations may be made.…

    • 1036 Words
    • 5 Pages
    Better Essays
    Read More
  • Better Essays

    Differentiating Between Market Structures Paper on Kudler Fine Foods Essay Example
    • 1078 Words
    • 5 Pages

    Differentiating Between Market Structures Paper on Kudler Fine Foods Essay Example

    The analysis will apply important microeconomic concepts toward the competitive strategies of the Kudler Fine Food Virtual Organization, which affect its long-term profitability. The analysis will evaluate the differences between market structures and review the organization’s strategic plan, marketing overview, market surveys, and other material to evaluate the organization’s competitiveness in the marketplace, including its customers’ views. The analysis will identify the market structure that best applies to the organization, and assess how the market structure positively and negatively affects the firm’s long-term profitability. The analysis will perform a market analysis, reviewing competitive strategies, and make recommendations on how the firm can maximize profits.…

    • 1078 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    Week 4 Assignment Xeco212
    • 805 Words
    • 4 Pages

    Week 4 Assignment Xeco212

    The three important market structures in economics are competitive markets, monopolies, and oligopolies. Each market plays a different role in the economy. Competitive markets are when no firm has the power to affect the market price of a good and “many buyers and sellers trading identical products so that each buyer and seller is a price taker” (Mankiw, 290). A monopolistic market is when a specific person or enterprise is the only supplier of a certain good. An oligopoly is a market in which a good has only a few “similar or identical” (Mankiw, 346) products for sale.…

    • 805 Words
    • 4 Pages
    Good Essays
    Read More
  • Better Essays

    Maximizing Profits in Market Structures Paper
    • 1137 Words
    • 5 Pages

    Maximizing Profits in Market Structures Paper

    The structure of a market is defined by the number of firms that are competing in that market, along with factors such as: the ways in which these firms are alike or different, and the obstacles that exist in any new firms entering that market. In this report I will discuss Competitive Markets, Monopolies, and Oligopolies. I will point out what role each of the market structure play in the economy. This report will list the characteristics of each market structure. I will share how the price is determined in each market structure in terms of maximizing profits. This report will share how the output is determined in each market structure in terms of maximizing profits. I will share what the barriers are to the entries.…

    • 1137 Words
    • 5 Pages
    Better Essays
    Read More
  • Powerful Essays

    Eco 365 Week 2 Differentiating Market Structure Research Paper
    • 1494 Words
    • 6 Pages

    Eco 365 Week 2 Differentiating Market Structure Research Paper

    Within the world of marketing, there are different advantages which will determine how the product market shall operate. The overall objectives for any company or organization is to supply a product which consumers will constantly demand. As consumer products are produced, competition amongst products organizations will occur. This article will explain the differentiation of market structure and the proprietors it entails.…

    • 1494 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    ECO 365 week 4 Differentiating Between Market structures
    • 1201 Words
    • 4 Pages

    ECO 365 week 4 Differentiating Between Market structures

    There are four types of market structures, Monopoly, Perfect Competition, Monopolistic Competition, and Oligopoly. They are differentiated by the number of firms in the industry, barriers to entry, pricing power of the firm, output decisions interdependence, and whether products are homogeneous (Colander, 2013).…

    • 1201 Words
    • 4 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Organization and Market Structure
    • 508 Words
    • 3 Pages

    Organization and Market Structure

    You will apply important microeconomics concepts toward the competitive strategies of the Kudler Fine Food Virtual Organization that affect its long-term profitability. You will evaluate the differences between market structures and review the organization’s strategic plan, marketing overview, market surveys, and other material to evaluate the organization’s competitiveness in the marketplace, including its customers’ views. In the process, you will identify the market structure that you believe best applies to this organization, and assess how the market structure positively and negatively affects the firm’s long-term profitability.…

    • 508 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Ebay and Business Structures
    • 1173 Words
    • 5 Pages

    Ebay and Business Structures

    There are a variety of different business structures that comprise the market in the world today. The most common ones found in the business world today are sole proprietorships, partnerships, and corporations. From these you will also find monopolies and oligopolies. Economists assume there are a number of different buyers and sellers in the market which leads to competition which allows prices to change in response to changes in supply and demand.(1) In many industries you there are substitutes for products, so if one type of product becomes too expensive the consumer can choose an alternative product that is cheaper, or one of better quality. This is called perfect competition within different companies. However, in some industries there are no substitutes for a product. In a market with only one supplier of a good or service, the producer can control the price meaning that the consumer does not have a choice, cannot maximize his or her total utility, and has very little to no influence over the price of the good or service they require. This is called a monopoly, where the single business is the industry. In slight contrast, you have the oligopoly which is at least two companies competing for market share. In an oligopoly, products are usually very similar, if not identical to each other, and in order to make their product more attractive they will lower their prices, forcing the other one out of the market until that firm lowers their price. Finally, the fourth type of business structure is called monopolistic competition. Like an oligopoly, these firms produce similar or identical products where substitute products usually aren’t available, although monopolistic competition is between many firms, where an oligopoly is usually two or three different companies controlling the market. In monopolistic competition, a firm takes the prices charged by its rivals as given…

    • 1173 Words
    • 5 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Week 4 Differentiating Between Market Structures
    • 386 Words
    • 3 Pages

    Week 4 Differentiating Between Market Structures

    Spendy but indispensable: Breaking down the full $650 cost of the iPhone 5 (2013, July). Digital…

    • 386 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Differentiating Between Market Structures Simulation
    • 845 Words
    • 4 Pages

    Differentiating Between Market Structures Simulation

    The first structure that was discussed was the Perfect competition. Here the Perfect competition is characterized by many buyers and sellers, many products that are similar in nature and, as a result, many substitutes. “Perfect competition means there are few, if any, barriers to entry for new companies, and prices are determined by supply and demand. Therefore, producers in a perfectly competitive market are subject to the prices determined by the market and do not have any influence” (Investopedia, 2006). For example, in a perfectly competitive market, should a single firm decide to increase its selling price of a good, the consumers can just turn to the nearest competitor for a better price, causing any firm that increases its prices to lose market share and profits.…

    • 845 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    A Differentiating Between Market Structures Table and Questions
    • 281 Words
    • 2 Pages

    A Differentiating Between Market Structures Table and Questions

    1. What is the difference between a public good and a private good? The difference between a public good, and a private good is that a public good is for everyone to use. The public good is provided for all to have use to such as a restroom, or water fountain. Now a private good will be when everyone is still able to use the good, but it can now come at some type of cost. An example here would be a library will charge some to make a fax or copy something. This is the differences between a public and private goods.…

    • 281 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Differentiating Between Market Structures
    • 1590 Words
    • 7 Pages

    Differentiating Between Market Structures

    Market structure is the physical characteristics of the market within which companies react. This means that there are different kinds of market structure based on how companies work together within a particular industry. Location and product have the most to do with determining the market structure. There are four defined market types. The first market structure is called the perfectly competitive market. The second market is called a monopoly market structure. The third market is called monopolistic competition market structure. The final market is called oligopoly market structure. Each market structure is different and both benefits and disadvantages to businesses.…

    • 1590 Words
    • 7 Pages
    Better Essays
    Read More
  • Good Essays

    Concentration Ratio Essay Example
    • 831 Words
    • 4 Pages

    Concentration Ratio Essay Example

    There are four major types of market structures: Perfect competition, with a very low concentration ratio, is a market structure with many firms, each selling an identical product to many buyers. There are no restrictions on entry of new firms to the industry. With thousands of firms having a market share there is little power amongst any few firms. Monopolistic competition, below 40% for the four-firm measurement, is a market structure with many firms; each firm produces similar but slightly different products. Each firm possesses an element of market power with no restrictions on entry of new firms to the industry markets in which numerous firms supply products which are each slightly different. Oligopoly, above 40% for the four-firm measurement, is a market structure in which a small number of firms compete. The firms might produce almost identical products. The barriers limiting entry into the market the market power lies within 4 top producing firms. Monopoly, with a near-100% four-firm measurement because there is only one market holding the majority of the market power, is a market structure in which one firm produces the entire output of the industry There are no close substitutes for the product. There are barriers to entry that protect the firm from competition by entering firms.…

    • 831 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Market Structures: Test Questions and Answers
    • 1419 Words
    • 6 Pages

    Market Structures: Test Questions and Answers

    a. informative advertising b. competitive advertising c. economies of scale d. pure oligopoly e. differentiated oligopoly…

    • 1419 Words
    • 6 Pages
    Satisfactory Essays
    Read More

Related Topics