ECO 201 - Microeconomics
Professor: Dr. David Fogarty
Competition and markets
For this assignment, I have to report on three issues, to ensure that I am able to understand the differences between perfect and imperfect competition. The first topic I will address is Firms in Competitive Markets, the next topic I will evaluate is Monopoly, and the final topic that I will reflect upon is Oligopoly.
Firms in Competitive Markets - After viewing the “Incredible Edible Egg” Web Site, which is sponsored by the American Egg Board I obviously realized that this was, indeed, an advertisement for the entire egg industry. One of the questions for this assignment was whether or not I had ever seen an advertisement for an individual egg producer. Oddly enough, I have seen an ad for a particular “brand” of eggs called “Eggsland’s Best”. This particular egg company has marketed itself as a premier egg – and to help signify their distinction, all of their eggs are stamped with a tiny red stamp that reads “EB”. This stamp ensures that you have purchased a very high quality egg, as opposed to those “ordinary, low budget” eggs – which must be inferior since they don’t have the quality stamp. In addition, I have seen several variations of the egg product on the market – one example of this is Egg Beaters.
Monopoly – After researching the concept of a monopoly, which is defined as having the exclusive rights or control of a commodity in a particular market that makes possible the manipulation of prices, I have determined that I don’t believe that Debeers is a monopolistic company in relation to diamonds. There are too many other firms that sell or distribute diamonds, to qualify Debeers as a diamond monopoly firm, in my opinon.
Oligopoly – In researching the economic term “Oligopoly”, I was surprised to discover that it meant the market condition that exists when there are few sellers, as a result of which... [continues]
Cite This Essay
(2010, 09). Eco201. StudyMode.com. Retrieved 09, 2010, from http://www.studymode.com/essays/Eco201-405157.html
"Eco201" StudyMode.com. 09 2010. 09 2010 <http://www.studymode.com/essays/Eco201-405157.html>.
"Eco201." StudyMode.com. 09, 2010. Accessed 09, 2010. http://www.studymode.com/essays/Eco201-405157.html.