Monopoly

market structure has a great influence on the behaviour of individuals firms in the market and will affect how firm price their product in the history. They are four basic market structures which are perfect competition, monopolistic competition, monopoly and oligopoly. In a perfect competition market structure several firm are present who all produce identical products…

Oligopoly What is oligopoly? Oligopoly refers to a situation with a few firms on the market and the central assumption that differs from the competitive model is that the firms understand that their actions affect the market price. There is an industry of different models, but most of these are in some way or another variations on the two really central models of oligopoly. These are: 1. The Cournot model, where the strategic variable is a quantity choice. 2. The Bertrand model, where the…

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 that the competition…

us to understand the function of market and determine the behavior of firms in the market. It also can be defined as a characteristic or specificity of a company in a market. There are four types of market structures which are perfect competition, monopoly, oligopoly and monopolistic competition. According to our analysis, Darlie is a monopolistic competition. Darlie is in a market that there are many competitive firms selling differentiated products, no barriers to entry or exit, the firms are…

Competition is considered to be the chief component of the free market system. However, market can be manipulated when some businesses try to gain more market power than the others, this could distort competition and could also reduce economic efficiency. Hence, the presence of an effective competition and merger policy is vital to protect consumer interest, innovation of new product and technology and strong economic growth. “The necessity for competition policy was already recognised by Adam…

Kellogg argued that Rockefeller had gained his business which had also a monopoly by threats and under the table deals with railroad companies. By doing this it gave Rockefeller an advantage over his competition. He would then state that the success of profits were do to efficiency and business tactics and never reflected the…

Market concentration is the extent to which, relatively small number of firms account for relatively large share in the market. In other words, it is the degree of monopoly power exercised by few firms. Alternative terms for market concentration are industrial concentration or seller’s concentration. Market concentration is considered as an important aspect of market structure as it reflects the market power and hence firm behavior and performance. Research Problem Probing into the existing…

Apple Incorporated, founded by Steve Jobs, Steve Wozniak and Ronald Wayne, is an international technology company based in Cupertino, California. Established April 1st 1976 as Apple Computers, Jobs, Wozniak and Wayne aimed to deliver personal computers to a mass audience (Richardson, 2008:online). However, Apple Computers shifted its focus from personal computers to consumer electronics, computer software and online services. This was reflected in their name change on January 9th 2007. Their…

Methodology Four different models characterize a market structure in which there are only a few firms, each of which is large relative to the total industry. In order to correctly determine Apple’s position on the market and to determine whether Apple is superior in the industry it operates in, all four models need to be identified. The four basic oligopoly models are: Sweezy Oligopoly, Cournot Model, Stackelberg oligopoly and Bertrand model (Baye, 2012). A firm is characterized as a Sweezy…

In the article ‘Boulder-based company to pay for retaliation”, written by Erica Tinsley from 9 News, tells of how an employee was terminated for questioning the safety of some of the equipment in the location. This was a violation of the employee’s labor rights and Occupational Safety and Health Administration (OSHA) was there to help the employee. The company was to pay $125,000 to their former employee because of their violation of the Consumer Product Safety Improvement Act. When reading this…