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It is good for two firms to compete, especially for the consumer. The best way to show this is by a basic example. If Company A is the only company that makes TVs, then they can charge whatever they want to because they are the only company that makes it. If Company B begins to make TVs, then Company A now has competition. Now, Company B could price their TV lower than Company A, and in return, Company A has to price theirs lower to keep up with the competition. Now, in today's world, throw in multiple competitors and that is what the economy is made of. It is great for the consumers, but bad for the firms because they won't make as much money as they would if they had a monopoly. The Sherman Antitrust Act was put in place to protect consumers from monopolies taking advantage of them.
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What are the primary sources of the competitive advantages firms use to compete in international market?
The local market share is one of the primary sources of the competitive advantages that firms use to compete in the international market.
What are the primary sources of the competitive advantages firms use to compete in international markets?
The local market share is one of the primary sources of the competitive advantages that firms use to compete in the international market.
What Two features of monopolistic competition?
· Two firms in the industry · Strong control over price. · Uses Non price competition to compete · Very strong Barriers to entry Note. a pure dupoly very rarly occurs in real life the more common is two dominate firms who hold majority of the market share.
What government payment helps domestic producers compete with a foreign firms?
Subsidies
What are the characteristics of a Duopoly market structure?
· Two firms in the industry · Strong control over price. · Uses Non price competition to compete · Very strong Barriers to entry
Why does firms compete?
fiming
True-or false-explicit collusion means when firms explicitly compete?
It is false.It means when firms explicitly agree to co-operate rather than compete.
What are the primary sources of the competitive advantages firms use to compete in international market?
The local market share is one of the primary sources of the competitive advantages that firms use to compete in the international market.
What are the primary sources of the competitive advantages firms use to compete in international markets?
The local market share is one of the primary sources of the competitive advantages that firms use to compete in the international market.
Of what considerations should firms attempting to compete on a global basis be aware?
Firms attempting to compete on a global basis should be aware that nations differ greatly in their political, legal, economic, and cultural environments
What Two features of monopolistic competition?
· Two firms in the industry · Strong control over price. · Uses Non price competition to compete · Very strong Barriers to entry Note. a pure dupoly very rarly occurs in real life the more common is two dominate firms who hold majority of the market share.
What government payment helps domestic producers compete with a foreign firms?
Subsidies
What are the characteristic of a market structure?
· Two firms in the industry · Strong control over price. · Uses Non price competition to compete · Very strong Barriers to entry
What put America in a better position to compete with the countries of Europe?
it because of the alantic and the pacific ocean that seperated the two countries so they could have a better chance to compete with theses european countries
Why don't small firms grow bigger?
A lack of resources to expand is usually the answer. Small firms must keep their prices small to compete with the bigger firms and in that price it does not include the money needed for expantion.
What are the characteristics of a Duopoly market structure?
· Two firms in the industry · Strong control over price. · Uses Non price competition to compete · Very strong Barriers to entry
What is the strategy of Ford motor company?
The stratergies of Ford is to: Cover costs Make Profit Compete with other firms
