Monopoly

In perfect competition a market structure is described by numerous well-informed, independent sellers and buyers who trade equal products (Farnham, 2014). The City Farmer’s Market is a great example of perfect competition. Most Farmer’s Markets vend and price their products the same. Most farmer’s markets, like the City Market, advertise their business solely on the internet, but there are many signs downtown in Indianapolis advertising about it. The farmer’s markets have a great number of…

The definition of Relational Dialectics Theory describes how relational life is described as an ongoing tension between contradictory impulses (199). However, the theory can benefit from economic terms as presented in Social Exchange Theory. Moreover, the theory could develop and explain how cost and rewards affect a relationship based on ongoing tensions. The two theories have similarities staring with their assumptions of rational life. Consequently, Relational Dialectics can use an…

The policy group of Office of Secretary Les Singer has decided that we should let the market determine the prices for the gasoline distribution. The policy that we chose would be equitable to everyone (producers and consumers). In this policy, the price would be not too high and people can afford gasoline with the money they have, making the producers satisfied with the prices. This policy would be the best opinion because not only will people afford gasoline but they will be saving money and…

1. There are sure sides for both for and against noncompete agreements. I can see both sides of the arguments making sense because the company wants to keep their secrets to themselves, but the employer wants to continue to grow his career and not sit out for a year. An argument for noncompete agreements could be that small companies could always get their employees bought out by big companies. If I started a small business and had secrets that were very important to my growth, I would want to…

Problems in achieving the merger Essentially the critics presented 2 arguments against the acquisition of NBC universal by Comcast. Firstly they proposed the competitive harm from a Vertical Transaction. A vertical merger can harm competition by facilitating exclusion or collusion. Free Press argued that Comcast’s collaborative effort with NBC would stifle competition in online video (TV Everywhere model) by restricting where, the vast amount of “must-see” NBC-owned content can be offered, and…

Michael Porter supposes the competitiveness of a country as a equation of four major determinants: factor conditions; demand conditions; related and supporting industries; and, firm strategy, structure, and rivalry. Although these determinants impact the presence of competitive advantage of whole nation, their nature refers that they are more specific of a particular industry instead of typical of a country. The reason is that in Porter’s theory the basic unit of analysis for understanding…

1. To what extent has the evolution of the circus industry followed the pattern predicted by the industry lifecycle model? The industry lifecycle model includes four stages: introduction, growth, maturity and decline. After entering to the decline stage, the industry can either experience rebirth and hence keep the industry alive or endure death and thus disappear from the market. The circus industry has closely followed the pattern predicted by the industry lifecycle model. According to the…

Name: Morad Hijazin Course Number: ECON 5F70 040, Semester: Summer 2016 Assignment Name: Unit 4 Application Application: Explain why monopolistic competitors earn only a normal profit in the long run. Provide an industry example to illustrate your explanation. As we know in the monopolistic competitors the firms are price makers, we are talking about big businesses that control the whole market, and the barriers to enter their industries are very difficult. Now the firms in long-run at the…

Defined as “the market condition that exists when there are few sellers, as a result of which they can greatly influence price and other market factors,” by the Merriam-Webster Dictionary, oligopoly has been the driving force of the American Motion Picture Industry since as early as the 1920s. Dominating the industry was the “Big Five”: Paramount Pictures, 20th Century Fox (Fox), Metro-Goldwyn-Mayer (MGM), Warner Bros, and Radio Keith Orpheum (R.K.O. Pictures). Together with the “Little Three”:…

Oligopoly is defined as having a few big sellers within a market. A real-world example of oligopoly would be fast food restaurant such as McDonald’s, Wendy’s, Burger King, and Dairy Queen, these fast food companies are constantly creating specials like 4 for $4 and $2 and $3 on certain items on their menu to attract customers. Each one of these consumers want to dominate the world of fast-food, but like everything we do in life there can only be one that’s on top at a time. McDonald’s, Wendy’s,…