A market can be defined as a group of firms willing and able to sell a similar product or service to the same potential buyers.
Imperfect competition covers all situations where there is neither pure competition nor pure monopoly.
Perfect competition and pure monopoly are very unlikely to be found in the real world.
In the real world, it is the imperfect competition lying between perfect competition and pure monopoly.
The fundamental distinguishing characteristic of imperfect competition is that average revenue curve slopes downwards throughout its length, but it slopes downwards at different rates in different categories of imperfect competition.
Monopoly refers to the market situation where there is a
Single seller selling a product which has no close substitutes.
Monopolies are characterized by a lack of economic competition to produce the good or service, a lack of viable substitute goods, and the existence of a high monopoly price well above the firm's marginal cost that leads to a high monopoly profit
The word “oligopoly” comes from the Greek “oligos” meaning "little or small” and “polein” meaning “to sell.” When “oligos” is used in the plural, it means “few” ,few firms or few sellers.
DEFINATION:
Oligopoly is that form of market where there are few firms and there is natural interdependence among the firms regarding price and output policy.
Students should be able to:
Explain and evaluate the characteristics and necessary conditions for a monopsony to operate.
Evaluate the potential costs and benefits of a monopsony to both firms and consumers.
A market can be defined as a group of firms willing and able to sell a similar product or service to the same potential buyers.
Imperfect competition covers all situations where there is neither pure competition nor pure monopoly.
Perfect competition and pure monopoly are very unlikely to be found in the real world.
In the real world, it is the imperfect competition lying between perfect competition and pure monopoly.
The fundamental distinguishing characteristic of imperfect competition is that average revenue curve slopes downwards throughout its length, but it slopes downwards at different rates in different categories of imperfect competition.
Monopoly refers to the market situation where there is a
Single seller selling a product which has no close substitutes.
Monopolies are characterized by a lack of economic competition to produce the good or service, a lack of viable substitute goods, and the existence of a high monopoly price well above the firm's marginal cost that leads to a high monopoly profit
The word “oligopoly” comes from the Greek “oligos” meaning "little or small” and “polein” meaning “to sell.” When “oligos” is used in the plural, it means “few” ,few firms or few sellers.
DEFINATION:
Oligopoly is that form of market where there are few firms and there is natural interdependence among the firms regarding price and output policy.
Students should be able to:
Explain and evaluate the characteristics and necessary conditions for a monopsony to operate.
Evaluate the potential costs and benefits of a monopsony to both firms and consumers.
This presentation is made for " Introduction to business" course. It is about Types of competitions in sales market or Market Structure which has 4 types ; Perfect, Monopolistic, Oligopoly, and Monopoly. It includes case study of " Wal-Mart " as well. ( but i'm not sure if it's accurate )
File Format : PPTX Power Point 2007 or Higher.
Miss Nannapat K. ( MUM )
Tim3flies
Download these notes and other resources at https://WeAreQurious.com/Economics
Teaching, learning and revision notes for Monopsony in A-Level Economics and IB Economics for all exam boards (Edexcel, AQA, OCR, Eduqas, WJEC).
Ten Principles of Economics - Micro & Macro EconomicsFaHaD .H. NooR
Ten Principles of Economics
Principle #1: People Face Trade-offs.
Principle #2: The Cost of Something Is What You Give Up to Get It.
Principle #3: Rational People Think at the Margin.
Principle #4: People Respond to Incentives.
Principle #5: Trade Can Make Everyone Better Off.
Principle #6: Markets Are Usually a Good Way to Organize Economic Activity.
Principle #7: Governments Can Sometimes Improve Market Outcomes.
Principle #8: The Standard of Living Depends on a Country’s Production.
Principle #9: Prices Rise When the Government Prints Too Much Money.
Principle #10: Society Faces a Short-run Trade-off Between Inflation and Unemployment.
Compulsory assignment for the completion of thesis course at Carleton University\'s, Sprott School of Business. This strategic management presentation, displays understanding of the chosen corporation (Walmart), as well as its industry, and strategic objectives. Lastly, this presentation offers strategic alternatives based on weakness assessed.
Monopoly is a pivotal area to the study of market structures, which directly concerns normative aspects of economic competition, and sets the foundations for fields such as industrial organization and economics of regulation. There are four basic types of market structures under traditional economic analysis: perfect competition, monopolistic competition, oligopoly and monopoly...
The Contents Are:
Monopoly
Perfect Competition
Imperfect Competition
Oligopoly
Monopolistic Competition:
Characteristics Of Monopolistic Competition
Monopolistic Competitive Firm Earing Profit In Short Run
Monopolistic Competitive Firm Losses In Short Run
Monopolistic Competition In Long Run
Monopolistic Competition And The Welfare Of Society
Advertising
The Critique Of Advertising
The Defence Of Advertising
In a market system, changes in prices cause the shift in resources, from making products that are becoming less popular to making those that are becoming more popular
Students should be able to:
Understand the characteristics of this model and be able to use them to explain the behaviour of firms in this market structure
Explain and evaluate the differences in efficiency between perfect competition and monopoly
Explain and evaluate the potential costs and benefits of monopoly to both firms and consumers
This presentation is made for " Introduction to business" course. It is about Types of competitions in sales market or Market Structure which has 4 types ; Perfect, Monopolistic, Oligopoly, and Monopoly. It includes case study of " Wal-Mart " as well. ( but i'm not sure if it's accurate )
File Format : PPTX Power Point 2007 or Higher.
Miss Nannapat K. ( MUM )
Tim3flies
Download these notes and other resources at https://WeAreQurious.com/Economics
Teaching, learning and revision notes for Monopsony in A-Level Economics and IB Economics for all exam boards (Edexcel, AQA, OCR, Eduqas, WJEC).
Ten Principles of Economics - Micro & Macro EconomicsFaHaD .H. NooR
Ten Principles of Economics
Principle #1: People Face Trade-offs.
Principle #2: The Cost of Something Is What You Give Up to Get It.
Principle #3: Rational People Think at the Margin.
Principle #4: People Respond to Incentives.
Principle #5: Trade Can Make Everyone Better Off.
Principle #6: Markets Are Usually a Good Way to Organize Economic Activity.
Principle #7: Governments Can Sometimes Improve Market Outcomes.
Principle #8: The Standard of Living Depends on a Country’s Production.
Principle #9: Prices Rise When the Government Prints Too Much Money.
Principle #10: Society Faces a Short-run Trade-off Between Inflation and Unemployment.
Compulsory assignment for the completion of thesis course at Carleton University\'s, Sprott School of Business. This strategic management presentation, displays understanding of the chosen corporation (Walmart), as well as its industry, and strategic objectives. Lastly, this presentation offers strategic alternatives based on weakness assessed.
Monopoly is a pivotal area to the study of market structures, which directly concerns normative aspects of economic competition, and sets the foundations for fields such as industrial organization and economics of regulation. There are four basic types of market structures under traditional economic analysis: perfect competition, monopolistic competition, oligopoly and monopoly...
The Contents Are:
Monopoly
Perfect Competition
Imperfect Competition
Oligopoly
Monopolistic Competition:
Characteristics Of Monopolistic Competition
Monopolistic Competitive Firm Earing Profit In Short Run
Monopolistic Competitive Firm Losses In Short Run
Monopolistic Competition In Long Run
Monopolistic Competition And The Welfare Of Society
Advertising
The Critique Of Advertising
The Defence Of Advertising
In a market system, changes in prices cause the shift in resources, from making products that are becoming less popular to making those that are becoming more popular
Students should be able to:
Understand the characteristics of this model and be able to use them to explain the behaviour of firms in this market structure
Explain and evaluate the differences in efficiency between perfect competition and monopoly
Explain and evaluate the potential costs and benefits of monopoly to both firms and consumers
Why behavioural economics in b2b marketing will change what you do and how you do it. Insight into how the use of buyer psychology is changing how businesses can influence buyers and prospects throughout the buyer journey. For more information or to talk Behavioural Economics in business-to-business marketing email info@earnest-agency.com
Emaar South Urbana 2 - Golf Townhomes - Dubai SouthSandeepnextgen
Emaar South Urbana Golf Townhomes is a newly introduced residential project in the area of Emaar South by the pioneer real estate developer, Emaar Properties. Enclosed with the valuable places like Al Maktoum Airport and vicinity of Dubai Expo 2020 site, the location of Dubai South is on the verge of becoming central place of Dubai.
Developing a game - From concept to marketPascal Luban
In this short version of the talk held at the Transmedia Workshop 2014 in Solothurn (Switzerland), I summarize the key phases in the development of a video game and the main pitfalls to look for.
Тема 6. Создание учебных видеороликов. Типология и подготовка материалов
Содержание темы 6
Типология учебного видео.
Препродакшн. Подготовка предварительных материалов скринкаста. Правила создания презентаций для скринкаста (подготовка шаблонов, требованияк к#nbsp;фонам, шрифтам, верстке, внутрикадровая и#nbsp;межкадровая анимация). Использование эффекта рисования в#nbsp;процессе создания скринкаста.
Аудиосопровождение скринкаста. Требования к#nbsp;голосу, стилю. Настройка оборудования.
Структура скринкаста.
Сервис Scrincast-O-Matic. Учебные ролики по#nbsp;сервису.
Бесплатное приложение iSpring Free Cam
Приложение Camtasia Studio.
Тема 8. Подготовка скринкастов. Монтаж
Содержание темы 8
Приложение Camtasia Studio.
Постпродакшн (монтаж) скринкаста.
Понятие холста, таймлайна, дорожки. Удаление длиннот, ускорение повествования. Увеличение («наезд камеры»). Масштабирование и панорамирование. SmartFocus.
Дорожки.
Наложение статических изображений и дополнительных видео. Картинка в картинке.
Выноски. Визуальные свойства.
Работа со звуком. Удаление шумов, наложение фонового звукового сопровождения.
Публикация проекта.
Рендеринг — сохранение результата работы в виде файла нужного разрешения и формата. Массовые операции — рендеринг нескольких проектов.
This Presentation is on Market Structure and its types. Including all the images of revenue, producer equilibrium, its elasticity, examples of all the market, characteristics and features of all the market. This presentation is very helpful in understanding the market structure and the types of market structure.
Economics has its own special way in describing types of market, that is, to determine on what extent business firms in each type of market competes with one another in terms of the quality of final produced products.
Economists usually prefer to have competitive markets.
Price is determined whether high or low unless there is competition.
Presence of alternative products, services, and viewpoints are also considered.
That is why economists study markets with an eye to how much competition exists.
Economists have identified four types of competition—perfect competition, monopolistic competition, oligopoly, and monopoly. Perfect competition was discussed in the last section; we’ll cover the remaining three types of competition here.
Monopolistic Competition
In monopolistic competition, we still have many sellers (as we had under perfect competition). Now, however, they don’t sell identical products. Instead, they sell differentiated products—products that differ somewhat, or are perceived to differ, even though they serve a similar purpose. Products can be differentiated in a number of ways, including quality, style, convenience, location, and brand name. Some people prefer Coke over Pepsi, even though the two products are quite similar. But what if there was a substantial price difference between the two? In that case, buyers could be persuaded to switch from one to the other. Thus, if Coke has a big promotional sale at a supermarket chain, some Pepsi drinkers might switch (at least temporarily).
How is product differentiation accomplished? Sometimes, it’s simply geographical; you probably buy gasoline at the station closest to your home regardless of the brand. At other times, perceived differences between products are promoted by advertising designed to convince consumers that one product is different from another—and better than it. Regardless of customer loyalty to a product, however, if its price goes too high, the seller will lose business to a competitor. Under monopolistic competition, therefore, companies have only limited control over price.
Oligopoly
Oligopoly means few sellers. In an oligopolistic market, each seller supplies a large portion of all the products sold in the marketplace. In addition, because the cost of starting a business in an oligopolistic industry is usually high, the number of firms entering it is low.
Companies in oligopolistic industries include such large-scale enterprises as automobile companies and airlines. As large firms supplying a sizable portion of a market, these companies have some control over the prices they charge. But there’s a catch: because products are fairly similar, when one company lowers prices, others are often forced to follow suit to remain competitive. You see this practice all the time in the airline industry: When American Airlines announces a fare decrease, Continental, United Airlines, and others do likewise. When one automaker offers a special deal, its competitors usually come up with similar promotions.
Monopoly
In terms of the number of sellers and degree of competition, monopolies lie at the opposite end of the spectrum from perfect competition. In perfect competition, there are many small companies, none of which can control prices; they simply accept the market price determined by supply and demand. In a monopoly, however, there’s only one seller in the market.
Economics has its own special way in describing types of market, that is, to determine on what extent business firms in each type of market competes with one another in terms of the quality of final produced products.
Economists usually prefer to have competitive markets.
Price is determined whether high or low unless there is competition.
Presence of alternative products, services, and viewpoints are also considered.
That is why economists study markets with an eye to how much competition exists.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Latino Buying Power - May 2024 Presentation for Latino CaucusDanay Escanaverino
Unlock the potential of Latino Buying Power with this in-depth SlideShare presentation. Explore how the Latino consumer market is transforming the American economy, driven by their significant buying power, entrepreneurial contributions, and growing influence across various sectors.
**Key Sections Covered:**
1. **Economic Impact:** Understand the profound economic impact of Latino consumers on the U.S. economy. Discover how their increasing purchasing power is fueling growth in key industries and contributing to national economic prosperity.
2. **Buying Power:** Dive into detailed analyses of Latino buying power, including its growth trends, key drivers, and projections for the future. Learn how this influential group’s spending habits are shaping market dynamics and creating opportunities for businesses.
3. **Entrepreneurial Contributions:** Explore the entrepreneurial spirit within the Latino community. Examine how Latino-owned businesses are thriving and contributing to job creation, innovation, and economic diversification.
4. **Workforce Statistics:** Gain insights into the role of Latino workers in the American labor market. Review statistics on employment rates, occupational distribution, and the economic contributions of Latino professionals across various industries.
5. **Media Consumption:** Understand the media consumption habits of Latino audiences. Discover their preferences for digital platforms, television, radio, and social media. Learn how these consumption patterns are influencing advertising strategies and media content.
6. **Education:** Examine the educational achievements and challenges within the Latino community. Review statistics on enrollment, graduation rates, and fields of study. Understand the implications of education on economic mobility and workforce readiness.
7. **Home Ownership:** Explore trends in Latino home ownership. Understand the factors driving home buying decisions, the challenges faced by Latino homeowners, and the impact of home ownership on community stability and economic growth.
This SlideShare provides valuable insights for marketers, business owners, policymakers, and anyone interested in the economic influence of the Latino community. By understanding the various facets of Latino buying power, you can effectively engage with this dynamic and growing market segment.
Equip yourself with the knowledge to leverage Latino buying power, tap into their entrepreneurial spirit, and connect with their unique cultural and consumer preferences. Drive your business success by embracing the economic potential of Latino consumers.
**Keywords:** Latino buying power, economic impact, entrepreneurial contributions, workforce statistics, media consumption, education, home ownership, Latino market, Hispanic buying power, Latino purchasing power.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
2. NEXT
Chapter 7: Market Structures
KEY CONCEPT
• A market structure is an economic model that helps economists
examine the nature and degree of competition among businesses in
the same industry.
WHY THE CONCEPT MATTERS
• The level of competition in a market has a major impact on the prices
of products. The more sellers compete for your dollars, the more
competitive prices will be.
3. NEXT
The Characteristics of Perfect Competition
KEY CONCEPTS
• Economists classify markets based on how competitive they are
• Market structure—economic model of competition within an industry
• Perfect competition—ideal model of a market economy
– economists assess how competitiveness of market by where it
falls short
What Is Perfect Competition?
4. NEXT
The Characteristics of Perfect Competition
Characteristic 1: Many Buyers and Sellers
• No one buyer or seller has power to control price in the market
• Many sellers means buyers can choose a producer with better price
• Many buyers means sellers can all sell product at market price
– lack of demand will not cause sellers to lower prices
5. NEXT
The Characteristics of Perfect Competition
Characteristic 2: Standardized Product
• Standardized product—one producer’s product is identical to
another’s
• Perfect substitutes include
– agricultural products, such as wheat, eggs, milk
– basic commodities, such as notebook paper, gold
• Price is only basis for consumer choice
6. NEXT
The Characteristics of Perfect Competition
Characteristic 3: Freedom to Enter and Exit Markets
• Producers can enter market when profitable and exit when
unprofitable
• Regulations do not restrict businesses from entering or exiting
7. NEXT
The Characteristics of Perfect Competition
Characteristic 4: Independent Buyers and Sellers
• Neither buyers nor sellers join together to influence price
• Supply and demand set the equilibrium price
• Independent action ensures that market stays competitive
8. NEXT
The Characteristics of Perfect Competition
Characteristic 5: Well-informed Buyers and Sellers
• Buyers can compare prices
• Sellers know what competitors charge, what buyers willing to pay
• Price taker—seller that accepts market price set by supply and
demand
9. NEXT
Competition in the Real World
KEY CONCEPTS
• No perfectly competitive markets; none meet all conditions
• Imperfect competition—market structures that lack one or more of
the conditions
• Some markets come close, such as some wholesale farm products
10. NEXT
Competition in the Real World
Example 1: Corn
• Thousands of growers; decide only how much to produce at market
price
• Many buyers; standardized product; wholesale price easy to
determine
• In reality, several factors can interfere:
– government subsidies; farmers or buyers sometimes band
together
11. NEXT
Competition in the Real World
Example 2: Beef
• Many producers; each cut of beef is standard
– sellers can adjust only their production
• Competition somewhat imperfect because
– ranchers may join together to influence price
– producers may say products differ due to factors such as feed
12. NEXT
Reviewing Key Concepts
Explain the differences between the terms in each of
these pairs:
• market and market structure
• perfect competition and imperfect competition
13. NEXT
Characteristics of a Monopoly
KEY CONCEPTS
• Monopoly—market structure with one seller, no substitutes for
product
• Cartel—organization of sellers that agree to set prices, limit output
• Price maker—business without competitors, can set prices
• Barrier to entry—obstacle to entering market
– include government regulations, size, resources, technology
The Impact of Monopoly
14. NEXT
Characteristics of a Monopoly
Characteristic 1: Only One Seller
• Single business controls supply of product without close substitutes
• De Beers cartel controlled diamond market in 20th century because
– produced over half of world’s diamond supply
– bought up diamonds from smaller producers to resell
15. NEXT
Characteristics of a Monopoly
Characteristic 2: A Restricted, Regulated Market
• Government regulations allow single firm to control market
• De Beers worked with South African government
– restricted access of other producers
– controlled supply of diamonds
16. NEXT
Characteristics of a Monopoly
Characteristic 3: Control of Prices
• Monopolists can control prices because there are no close substitutes
• During economic downturns, De Beers created artificial shortage
– by withholding diamonds from market, kept prices higher
17. NEXT
Types of Monopolies
KEY CONCEPTS
• Natural monopoly—cost of production lowest with only one producer
• Government monopoly—government owns and runs or permits only
one producer
• Technological monopoly—one firm owns invention, technology,
method
• Geographic monopoly—no other sellers within a region
18. NEXT
Types of Monopolies
Example 1: Natural Monopoly: A Water Company
• In some markets, inefficient to have companies competing
• Example: public utilities that require complex systems
– economies of scale—average production cost falls as production
grows
• Government both supports and regulates
19. NEXT
Types of Monopolies
Example 2: Government Monopoly: The Postal Service
• Government runs some businesses that provide goods and services
– private firms cannot or do not want to provide because of low
profits
• Example: Postal Service has sole right to deliver first-class mail
• New services and technologies now compete
– private delivery companies, fax, e-mail, online bill paying
20. NEXT
Types of Monopolies
Example 3: Technological Monopoly: Polaroid
• Patent—legal registration of invention; gives inventor sole rights
– enables businesses to recover costs of development
• Monopoly lasts for time limit of patent or until substitute invented
• Patent let Polaroid keep Kodak out of instant-photography market
– simpler cameras, digital cameras, quick processing reduced its
market
21. NEXT
Types of Monopolies
Example 4: Geographic Monopoly: Professional Sports
• Sports leagues tie teams to cities, regions; limit number of teams
– owners can charge high ticket prices, sell team merchandise
• Physical isolation—no other supplier in area—lets owner control
prices
• Very small market may not support two businesses of same type
22. NEXT
Profit Maximization by Monopolies
KEY CONCEPTS
• Monopoly cannot set prices too high
– faces downward-sloping demand curve
– raises equilibrium price by producing less than competitive market
would
• Most countries have laws to prevent monopolies
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Profit Maximization by Monopolies
EXAMPLE: Drug Manufacturer
• Drug companies maximize profits during patent period
– afterwards, others market cheaper generic versions
• Schering-Plough strongly marketed non-drowsy antihistamine Claritin
– made up to $3 billion per year worldwide with patent
– after patent ended sales dropped to about $1 billion per year
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Reviewing Key Concepts
Explain the differences between the terms in each of
these pairs:
• monopoly and cartel
• natural monopoly and geographic monopoly
• technological monopoly and government monopoly
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Characteristics of Monopolistic Competition
KEY CONCEPTS
• Most real markets fall between perfect competition and monopoly
• Monopolistic competition—many sellers offer similar products
– one of most common market structures
– product differentiation—sellers try to distinguish their products
from similar ones
– nonprice competition—use factors other than price to attract
customers
Other Market Structures
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Characteristics of Monopolistic Competition
Characteristic 1: Many Sellers and Many Buyers
• Many sellers and many buyers
– fewer sellers than perfect competition but enough for true
competition
• Each seller chooses product to make, amount to make, price to
charge
– examples include T-shirts, batteries, hamburger restaurants
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Characteristics of Monopolistic Competition
Characteristic 2: Similar but Differentiated Products
• Consumer loyalty gained with unique product or apparent difference
• Sellers use market research to decide how to differentiate product
• Chains use sophisticated techniques—learn consumer lifestyles,
tastes
– focus groups—moderated discussions with small groups of
consumers
– survey large numbers of consumers
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Characteristics of Monopolistic Competition
Characteristic 3: Limited Control of Prices
• Differentiation gives producers limited control of prices
– low price distinguishes some products
– name brands or better quality priced higher
• Consumers pay extra if they perceive important enough difference
– will switch to substitute if price goes too high
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Characteristics of Monopolistic Competition
Characteristic 4: Freedom to Enter or Exit Market
• No great barriers to entry in monopolistically competitive markets
– when firms earn profit, other firms enter and increase competition
– competition can be difficult for small businesses against large ones
• Some firms start to take losses
– signal that it is time to exit the market
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Characteristics of an Oligopoly
KEY CONCEPTS
• Oligopoly—market structure with only a few sellers offering similar
product
• Less competitive than monopolistic competition
– each firm has large market share—percent of total sales in the
market
• Few firms due to high start-up costs—expenses of entering market
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Characteristics of an Oligopoly
Characteristic 1: Few Sellers and Many Buyers
• A few firms dominate market
– industry is oligopoly if four firms control 40 percent of market
• About half of manufacturing industries in United States are oligopolies
– include breakfast cereals, soft drinks, movies, industrial products
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Characteristics of an Oligopoly
Characteristic 2: Standardized or Differentiated Products
• Many industrial products standardized such as flat glass, aluminum
– firms differentiate by brand name, service, location
• Many consumer goods are differentiated
– use marketing strategies, such as focus groups, surveys
– create brand-name products that can be marketed widely
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Characteristics of an Oligopoly
Characteristic 3: More Control of Prices
• Each firm’s decisions about supply and price affect entire market
• If one firm lowers prices, others probably will too
– no firm gains market share from price drop; all risk losing profits
• If one raises prices, others may not in order to gain market share
• Anticipate competitors’ response to price, output, marketing changes
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Characteristics of an Oligopoly
Characteristic 4: Little Freedom to Enter or Exit Market
• High start-up costs—such as factories, warehouses—make entry
hard
– new firm may sell on small scale; hard to compete with established
ones
• Established firms have resources, patents, economies of scale
• High investment by firms in oligopoly make exit difficult
– operations too vast, complex to sell and reinvest easily
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Comparing Market Structures
KEY CONCEPTS
• Each market structure has benefits, problems
– each creates different balance of power between producers and
consumers
• Consumer has most influence, little choice in perfect competition
• Consumer has some influence, most choice in monopolistic
competition
• Consumer has limited influence, some choice in oligopolies
• Producers have the most control in a monopoly
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Joan Robinson: Challenging Established
Ideas
Explaining Real-World Competition
• In 1933, Robinson published The Economics of Imperfect
Competition
• Described oligopoly, monopsony (market with many sellers, one
buyer)
• Her theory reflected modern market economies in which
– firms compete through product differentiation and advertising
– many industries are controlled by oligopolies
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Reviewing Key Concepts
Explain the relationship between the terms in each of
these pairs:
• product differentiation and nonprice competition
• focus group and market share
• oligopoly and start-up costs
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Promoting Competition
KEY CONCEPTS
• Government regulation—rules or laws that control business behavior
– promotes competition and protects consumers
• Antitrust legislation—define monopolies, allow government to control
or break them up
• Trust—group of firms combined to reduce competition
• Merger—joining of firms or purchase of one firm by another
Regulation and Deregulation Today
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Promoting Competition
Origins of Antitrust Legislation
• Late 1800s, trusts dominated oil, steel, railroad industries
• 1890 Sherman Antitrust Act enabled government to control
monopolies
– regulate practices that might reduce competition
• Standard Oil Company had 90 percent of industry; set output, prices
– forced to give up control of 33 companies
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Promoting Competition
Antitrust Legislation Today
• Federal Trade Commission, Justice Department enforce antitrust
legislation
– tend to support mergers that benefit consumers
– tend to block mergers that concentrate market in hands of few
firms
• To evaluate potential merger, look at how market is defined
– market share before and after merger; if competitors get
eliminated
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Ensuring a Level Playing Field
KEY CONCEPTS
• Government ensures business practices do not reduce competition
– with less competition, prices go up, supply goes down
• In United States, laws prohibit most of these practices
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Ensuring a Level Playing Field
Prohibiting Unfair Business Practices
• Price fixing—competing businesses collaborate to set prices
– alternatively, they might agree to restrict output to drive up prices
• Market allocation—businesses divide up market, control own territory
• Predatory pricing—set prices below cost to drive out small producers
– used by cartels or large producers
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Protecting Consumers
KEY CONCEPTS
• Cease and desist order—requires firm to stop unfair business
practice
– issued when business behavior is unfair to competitors or
consumers
• Public disclosure—requires businesses to reveal product information
– enables consumers to make informed buying decisions
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Protecting Consumers
Consumer Protection Agencies
• Government protects consumers by regulating different aspects of
business
• Federal Trade Commission promotes competition, prevents unfair
practices
• Other agencies regulate specific industries, protect consumers
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Deregulating Industries
KEY CONCEPTS
• 20th century regulation focused on public service industries
• Deregulation—reduces or removes government oversight and control
• Deregulation may lead to fewer consumer protections
• Usually results in lower prices since markets become more
competitive
– with regulated prices, firms have no incentive to reduce costs
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Deregulating Industries
Deregulating the Airlines
• Airline Deregulation Act of 1978 removed control of routes and rates
• Benefits
– New carriers entered market: greater efficiency, lower prices
– More people chose plane travel
Problems
– Quality of service declined; airports became crowded
– Multiple bankruptcies resulted: layoffs, lower wages, lost pensions
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Reviewing Key Concepts
Explain the differences between the terms in each of
these pairs:
• trust and merger
• price fixing and predatory pricing
• regulation and deregulation
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Competition in Gadgets and Gizmos
Background
• Billions of people around the world own cell phones. As the market
becomes saturated, manufacturers are adding new gadgets and
gizmos to increase sales.
What’s the Issue?
• What affects your selection of a cell phone?
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Competition in Gadgets and Gizmos
{continued}
Thinking Economically
1. Compare the product described in document A and the one illustrated
in B. Are cell phones likely to become more or less complex? Explain
why or why not.
2. Which of the four market structures best fits the market for cellular
phones? Use evidence from documents A and C to explain your
answer.
3. In documents A and C, compare the role that market research plays
in the development of new products. Use evidence from the
documents.