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Do low entry barriers necessarily mean that a firm is threatened?
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What are the four characteristics of a pure monopoly?
1) Only one firm in the market (no competition). 2) Significant barriers to entry by other firms exist. 3) Lack of substitute goos for the monopolist's good. 4) Firm is a price-maker.
How does network externalities act as a barrier to entry?
1. Network externality is the benefit we get from a single consumer and when it gets to the greater values it makes us, meaning the firm, bigger so the bigger the firm, the bigger the barriers to entry because there will be a firm which does the same job and good at what it does.
What are the reasons for different sizes of firm?
Size of market Capital employed Organisation or structure of firm Barriers to entry No. Of employees Market share Rate of integrations it means merger and acquisition
Compare monopoly and monopolistic competition?
A monopoly is a market which has only one firm, the firm has market power, and there are barriers to entry. The long run profits for a monopolist may be greater than zero. Monopolistic competition is more closely related to perfect competition than monopoly. In monopolistic competition, there are many firms in the market. However, each firm has product differentiation. An example of monopolistic competition would be the jeans industry. There are many different types/quality of jeans e.g. True Religion, Levi's and Lee's. Products are somewhat differentiated, but, as in perfect competition, the long run profit = 0. Oligopoly is a market in which there are only a few firms, each firm has market power, and there is much product differentiation between the firms. The long-run profit of oligopoly can be greater than zero, because there are barriers to entry in the market.
What is the first main source of a monopoly's barrier to entry?
A key resource is owned by a single firm.
What are the four characteristics of a pure monopoly?
1) Only one firm in the market (no competition). 2) Significant barriers to entry by other firms exist. 3) Lack of substitute goos for the monopolist's good. 4) Firm is a price-maker.
How does network externalities act as a barrier to entry?
1. Network externality is the benefit we get from a single consumer and when it gets to the greater values it makes us, meaning the firm, bigger so the bigger the firm, the bigger the barriers to entry because there will be a firm which does the same job and good at what it does.
What are the reasons for different sizes of firm?
Size of market Capital employed Organisation or structure of firm Barriers to entry No. Of employees Market share Rate of integrations it means merger and acquisition
What is are monopolies?
A monopoly is a form of market structure in which there is only one firm which produces a certain good or service that has no close substitudes and in which the firm is protected from competition by a barier that prevents the entry of new firms.Barriers to entry: legal or natural constraints that protect a firm from potential competitors Legal monopoly: a market in which competition and entry are restricted by the granting of a publich franchise (exclusive right granted to a firm to suply a good or service i.e. Canada Post), government licence (control of entry into a particular occupation, profession and/or industry; requires a licence), patent (exclusive right granted to the inventor of a good or service), or copyright (an exclusive right granted to the author/composer of a literary piece, be it music, art or drama work)Natural monopoly: an industry in which one firm can supply the entire market at a lower average total cost han two or more firms can; there is a natural barriers to entry such as electric power.The firm can essentially set its own prices because there is no competition.
What specific factors could cause a firm to reject exporting as an entry mode?
There are several factors that could cause firms to reject exporting as an entry mode, including the presence of trade barriers, logistical issues, and distribution issues. Firms facing high tariff or nontariff barriers may find host country production preferable to home country production. Logistical considerations may also affect the desirability of exporting. For Example, the higher transportation costs associated with exporting, and the longer supply channel and difficulty communicating with customers may encourage a firm to choose an alternative entry method. Finally, firms that face difficulty finding appropriate distributors may turn to one of the other entry modes.
Which value is the willingness to stand firm on your values principles and convictions even when threatened?
Integrity. It is the ability to hold onto your values, principles, and convictions despite facing threats or challenges, demonstrating a deep commitment to what you believe is right.
What is purchases return and the double entry?
Purchase return - this is the outward return by the firm While double entry is when you have entered the transaction twice
Loss on sale of stock investments journal entry?
the entry can be done in two ways 1= if house is the propery of the firm but firm deals in some another business cash account dr profit and loss account dr to house account ** this entry is done when house has been sold in cash 2= if firm's business is to deal in houses then entry would be cash account dr to sales account
Does stretching build muscle?
not necessarily, it does make your muscles more firm and stong though.
What is the journal entries of cheque cancellation?
Party a/c.... Dr Bank a/c.....Cr If we issue a cheque we would have passed an entry (debit the receiver/firm & credit the bank) that entry should be reversed (debit bank & credit the firm).
What does firm to touch mean in baking?
"Firm to touch" means that when you lightly touch the top of the baked product, the dough will not jiggle or move as it would if still liquid. It will feel firm, but not necessarily hard.
Compare monopoly and monopolistic competition?
A monopoly is a market which has only one firm, the firm has market power, and there are barriers to entry. The long run profits for a monopolist may be greater than zero. Monopolistic competition is more closely related to perfect competition than monopoly. In monopolistic competition, there are many firms in the market. However, each firm has product differentiation. An example of monopolistic competition would be the jeans industry. There are many different types/quality of jeans e.g. True Religion, Levi's and Lee's. Products are somewhat differentiated, but, as in perfect competition, the long run profit = 0. Oligopoly is a market in which there are only a few firms, each firm has market power, and there is much product differentiation between the firms. The long-run profit of oligopoly can be greater than zero, because there are barriers to entry in the market.
