A Perfect Place

number of players which have a dominant market position in an oligopolistic market structure. Very little or no product differentiation as well as good communication and co-ordination possibilities due to few players in the bearing industry lead to perfect conditions to collude in a cartel. Firms mentioned in our case deliver to the market highly technologically advanced products, which make the entrance for new companies even harder. This resulted in a cartel to ensure stability in the demand…

The company follows a differentiation strategy because all of the products they sale are similar, if not the same from their rivals. The products on the shelves are the commodity and price is the primary basis of competition. Price wars between competitors are one reason that Best Buy is in the position that it’s in. Buyer’s price sensitivity determines if the customers will buy from you or simply go to a rival company due to the price of the product. Just as I thought they would when I began…

The neoclassical economic approach assumes that working time is perceived in terms of time allocation and related choices taken by a rational actor with regards to the consumption of time. Thereby, time is considered as a scarce resource, as a day is limited to 24 hours and therefore the main aim of the rational actors is to achieve a maximization of personal time utility (Sirianny & Negrey, 2000). This implies that the actors act in order to achieve their individual preferences and this…

In an industry, price leadership is the act that a company becomes the leader to determine the price of goods and services. The company, price leader, is often larger than other companies. Price leader determines the prices and other competitors have no alternative, need to lower their prices in order to compete and remain the market share. This type of pricing strategies is common in the oligopolies, which means fewer sellers in a market, for example oil companies, airline industry. Price…

Monopolies are a form of industry in which a few companies control all the aspects of their field. They set the prices, they promote to whom they want to sell to and receive all the profits. Monopolies and advertising go hand in hand. Advertising is what transforms a company into a monopoly. This then affects what people think they want and need. Thus, monopolies are what we consider as the leading companies and they are the ones who control most of the media shown to the public, this can either…

There is currently a situation occurring with two of the country’s biggest sugar producers. The two companies, Mega Corporation and BIG Enterprises, are considering a merger of their two companies to become one company, the Mega-Big Corporation. If this merger proceeds as planned, then the Mega-Big Corporation will control over 80 percent of the market share in Brazil. With such a large market share, the Mega-Big Corporation would be considered a monopoly of the sugar market. In the discussion…

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…

List the two assumptions that underlie the conclusion that free markets are efficient. Explain how these assumptions either do or do not apply to an industry of your choosing. Pg 150 The two assumptions that underlie the conclusion that free markets are efficient. The number one assumption is that the markets are imperfect competition with each other. This means that a company does not have enough market power to control the quantity or price of a good. The second assumption is that the outcome…

In this paper, Stephen Krasner expands on neoliberal institutionalism views towards global economics. Krasner defines two controlling variables for an economic system – state preferences and system structures. State preferences include aggregate income, social stability, political power, and economic growth. All four of these portions of state preferences relate the openness of a state to the respective aspect. For my argument, I will focus mostly on aggregate income and how it benefits the…

1-According to Miller, the price taker refers to a situation in which a company must accept the prevailing prices in the market of its products because the firm cannot influence the price (Miller, R. L. 2012). In other words, when there is competition, a firm must set the price of its product below the competitive price in order to obtain customers, but when the price is above the competitive price, customers will not buy that product. According to the author, the perfectly competitive model is…