Monopoly

not know the actual production level of another firm. Unexpected fall in prices may account for deviation from the colussive output or bad demand shock. So firms can deter deviation only by threatening to set Cournout quantities, which are above monopoly quantities, during a period of a price below agreed one. The equilibrium of the model is that firms want to maximise their profits at the collusive quantities,…

Industry and the organization As part of this project, we have selected the consumer apparel and footwear industry, which is represented by Nike Inc. About the company Nike Inc. is an American multinational corporation that designs, develops and markets sports footwear, apparel and accessories under its brand name. The company was founded in the year 1964 as Blue Ribbon Inc. , but was then named as Nike Inc. in 1970. The company is listed on New York Stock Exchange, under the ticker symbol of…

The Airline industry, which was regulated by the government, through a liberalisation policy. The airlines was supplied to the public, this was done to regulate competition and privatisation that occurred through the airline industry theses regulation however were lifted and the policies were more open. The supplier concentration theory is one of Porters five forces in which it suggest that the supplier influence, refers to the the excessive demand that suppliers can exert on business. This can…

Traditionally, only the big names, the giants of the industry ruled the textile market. It was like a monopoly cartel of the big players of the textile industry. The renowned names / brands like GulAhmed, Sapphire, Lakhany, Al-Karam Textiles, Lala Textiles and the likes ruled the market. But now, beginning around five to six years ago, things in the textile industry have changed. It is no more the ruling of the big shots. The “designer lawn” has hit the market. Launching and maintaining a brand…

There are four major types of competitive market structure, these include: Perfect competition, Monopolistic competition, Oligopoly and Monopoly. The competitive market structure an organisation belongs to is determined by the nature of their product, the number and size of other firms in the market and the entry and exit conditions of that market. The two organisations I will be comparing and contrasting are Tesco and Sainsbury’s which I believe belong to the Oligopoly market structure. The…

“U.S. Anti-trust regulations are a collection of state and federal laws that regulate conduct & organization of corporations to promote fair competition for benefit of consumers.” The US has 3 major laws concerning anti-trust regulations: The Sherman Anti-Trust Act, The Clayton Act, and The Federal Trade Commission Act. The US is “…world’s top cops on the antitrust beat.” The US has been a model for other countries to also implement anti-trust laws and they have such laws in place to create a…

passed the Clayton Anti-Trust Act in 1914. This legislation significantly expanded the government 's role in regulating business by prohibiting mergers and acquisitions if the effect “may be substantially to lessen competition, or to tend to create a monopoly” XXX(15 U.S. Code § 18). Finally, that same year, congress passed the Federal Trade Commission Act which bans “unfair methods of competition” and “unfair or deceptive acts or practices” (FTC). The combination of these efforts intended to…

is few or no barriers to enter or exit the market whenever you want where low costs must low sunk and there is no recoverable costs for the advertising. The sole of competition is so important in this market to keep prices low and prevent abuse of monopoly activities. The characteristic of contestable market: 1) There are no barriers to enter or leave the market. The firm can leave the market without costing them heavily. 2) There is no fixing prices so the firms can compete with each other. 3)…

The Rise of Big Business The Industrial Revolution is when the American society switched from having an agricultural society to having big business. The transformations that took place in American businesses following the Civil War involved more than a change in just industrial techniques or productivity they also expanded in size and scale. There were three major businesses during the Industrial Revolution; the railroad, oil, and steel industries. With the rise of these three major…

antitrust laws influence their day by day life in different ways. For example, in 1890, the Congress passed the Sherman Antitrust Act, a law which was intended in restoring business competition environment and also free business enterprise by breaking monopoly. The Sherman Anti-Trust Act stated that “This Act outlaws all contracts, conspiracies and combinations that preposterously control foreign and interstate trading. This incorporated assertions among contenders to alter costs, rig offers,…