A Perfect Couple

1. INTRODUCTION: In class we have learned about the different market structures that exist in the world. They are basically divided into four types namely • Perfect competition • Monopoly • Monopolistic competition • Oligopoly The most prevalent type of market structure in today’s world are monopolistic and oligopolistic competition and in some cases monopoly. The article that I had chosen takes about the ongoing price war between the e-commerce giants of India; Flipkart and Amazon. I feel…

Free market economy is based on supply and demand, there is either no government involved or little government if any. Free market economy is also known as the market economy. In a market economy people have an advantage because they have more money. Not everyone agrees with the aspects of a free market economy. Everyone has their own opinion about it, some people think it shows inequality in the economy. Despite the negative opinions, free market economy has helped billions of people all over…

Perfect competition: Perfect competition is the name given to an industry or to a market characterized by a large number of buyers and sellers engaged in the purchase and sale of a homogeneous commodity , with perfect knowledge of market price and quantities There are some characteristics of perfect competition: 1. Large number of buyers and sellers : In the perfect competition , a large number of buyers and sellers exists exists. However the high population of buyers and sellers fail to affect…

Monopoly situation exists when there is a single supplier of a unique product that has no close substitute. For example, Sky had a monopoly over the live football coverage. According to the 1998 Competition Act, abuse of dominant power means that a firm can 'behave independently of competitive pressures'. (Source: economicshelp.org) P MC…

they use on their devices. In real sense, the Smartphone market operates in the oligopolistic market because there are few firms that account for more than half of the industry supply. In this case, Apple has the iPhone; Google has the Android and a couple more companies. Any action taken by any one of these companies affects the whole industry because of the simple fact that these firms are…

Monopolistic competition had first been identified in the 1930s by Edward Chamberlin and Joan Robinson. Monopolistic competition is a form of imperfect competition with no barriers to entry and many firms. This essay intends to analyse the impact of branding and innovation in a monopolistic coffee market with an analysis of its effects on short and long-run profits. This essay will then discuss how applicable theory is to the real-world with a focus on the competitive advantage gained from…

According to Ronald Coase, founder of the Coase Theorem; the Coase Theorem is a theory in legal and economics that affirms that when there are complete competitive markets with no transaction costs, an efficient set of inputs and outputs to and from production-optimal distribution is selected regardless of how property rights are divided. In addition to that, according to Investopedia, “the Coase theorem asserts that when property rights are involved, parties naturally follow the most efficient…

1) Market based transfer prices Market based transfer prices occur where a perfectly competitive market exist for intermediate products which makes it optimal for both decision making and performance evaluation to set transfer prices at competitive market prices. A perfectly competitive market exist when products sold are all the same and no individual buyer or seller can affect market prices. Transfer prices are recorded at market prices therefore divisional performance is likely to represent…

Cocktail Party Economics discusses the topics of efficiency and equity within certain conditions and markets. As it says in MEL, efficiency means operating at the lowest possible cost for whatever a company is producing. When an economy is considered efficient, any attempts to make something better off would not be possible without making it worse. Furthermore, production is efficient when the production is produced at the lowest possible cost along with variable inputs of production as it says…

Although the market does have significant barriers to entry (monopoly) and prisoners are not concentrated in a few large prisons (perfect competition, the market does not meet any of the other elements of structure for these market types. Therefore, the market lies somewhere within the vast margins of oligopoly and monopolistic completion. Of the two, oligopoly is the most fitting,…