20/04/2010 EXECUTIVE SUMMARY: In economics the market relations between the suppliers and consumers of a product are known as demand and supply. From a demand –supply model we can easily determine the price and quantity sold in a market of a particular good like personal computer. In recent market‚ the affordability of computer plays an important role in high demand of it and to fulfil the required demand suppliers/ producers supply more and more computer in market. There are a number of factors which affect
Premium Supply and demand
Market structure is defined as the particular environment of a firm‚ the characteristics of which influence the firm’s pricing and output decisions. There are four theories of market structure. These theories are: Pure competition Monopolistic competition Oligopoly Monopoly Each of these theories produce some type of consumer behavior if the firm raises the price or if it reduces the price. The theory of pure competition is a theory that is built on four assumptions:
Premium Monopoly Perfect competition Oligopoly
Ruth N. Bolton & Matthew B. Myers Price-Based Global Market Segmentation for Services In business-to-business marketing‚ managers are often tasked with developing effective global pricing strategies for customers characterized by different cultures and different utilities for product attributes. The challenges of formulating international pricing schedules are especially evident in global markets for service offerings‚ where intensive customer contact‚ extensive customization requirements‚ and
Premium Supply and demand Price elasticity of demand Marketing
A. Creditors B. Industry factors C. Employee D. Ecological factors Difficulty: Easy Learning Objective: 1 4. (p.81) The factors beyond the control of the firm that influence its choice of direction and action‚ organizational structure and internal processes refers to A. Directional strategies B. External environment C. Organizational processes D. Internal environment Difficulty: Easy Learning Objective: 1 5. (p. 81) The ______ environment compromises factors
Premium Barriers to entry Barriers to exit
MARKET STRUCTURE Economists classify the market in different ways. In the main‚ types of markets are examined in four categories which are ‘monopoly‚ oligopoly‚ monopolistic competition and perfect competition’. There are some major features that separate these types of markets. A monopoly is a structure in which a single supplier produces and sells a given product. (E.g. IGDAS‚ ISKI‚ OPEC) If there is a single seller in a certain industry and there are not any close substitutes for the product
Premium Perfect competition Monopoly Oligopoly
Maximizing Profits in Market Structures Paper Josie Vennable Axia College of University of Phoenix INTRODUCTION When economists analyze the production decisions of a firm‚ they take into account the structure of the market in which the firm is operating. The structure of the market is determined by four different market characteristics: the number and size of the firms in the market‚ the ease with which firms may enter and exit the market‚ the degree to which firms’ products
Premium Monopoly Economics Perfect competition
security of the mail (USPS 2008). When monopolists are not protected by law from competition‚ the companies may have to keep their prices low in order to keep competition from entering the market. However‚ USPS is considered a pure monopoly and barriers of entry are in place. USPS is the only federal operating system that sends and delivers mail. USPS has competition in the market with services such as package delivery. Now‚ the agency has to compete with major companies such as UPS and FedEx. United States
Premium OPEC Monopoly Petroleum
Market entry and exit constitute major business strategy decisions reflecting a strategic initiative on the part of a firm to develop‚ or reshape‚ its product or market positioning Barriers to entry are obstacles in the way of firms attempting to enter a particular market‚ which may operate to give established firms particular advantage over investment. They are factors that allow incumbent firms to earn positive economic profits‚ while making it unprofitable for new comers to enter the industry
Premium Smartphone Mobile phone Personal digital assistant
Each market structure plays a significant role in the economy. Markets are categorized according to the structure of each industry serving the market. Three of the basic market structures include competitive markets‚ monopolies‚ and oligopolies. These differ due to the different number of strength of buyers and sellers and also the level of collusion between them. There are stages of competition and magnitude of the difference in products. When there are many buyers and sellers of a product
Premium Economics Marginal cost Monopoly
ENTRY BARRIERS IN LIQUOR INDUSTRY When a new firm enters into an industry it can affect all of the firms that are currently in that industry. “new entrants to an industry bring new capacity‚ the desire to gain market share‚ and often substantial resources. Prices can be bid down or incumbents cost inflated as a result‚ reducing profitability.”24Therefore as new firms enter into an industry the entire industry’s potential for sustained profits is reduced due to the increased amount of competition
Premium Brewing Marketing Barriers to entry