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Who Best states the main difference between a monopoly and monopolistic competition?
The main difference between a monopoly and monopolistic competition lies in the number of firms and the type of products they offer. A monopoly exists when a single firm dominates the market, offering a unique product with no close substitutes, allowing it to set prices without competition. In contrast, monopolistic competition features many firms that sell similar but differentiated products, leading to some degree of price-setting power while still facing competition. This results in a market where firms compete on factors beyond just price, such as quality and branding.
What does the bertrand model of oligopoly reveals?
The Bertrand model of oligopoly reveals that in a market with at least two firms producing identical products, competition on price can lead to a situation where prices are driven down to marginal cost. This outcome occurs because each firm has an incentive to undercut the other's price to capture the entire market. Unlike the Cournot model, which focuses on quantity competition, the Bertrand model demonstrates that price competition can lead to highly competitive outcomes, resulting in zero economic profits for firms in equilibrium. Ultimately, it highlights the importance of price-setting behavior in oligopolistic markets.
Explain collusive oligopoly with example?
Collusive oligopoly occurs when a small number of firms in an industry coordinate their actions to increase their collective profits, often by setting prices or output levels. This can take the form of explicit agreements, like cartels, or implicit understandings. A classic example is the Organization of the Petroleum Exporting Countries (OPEC), where member countries collaborate to control oil production and prices. Such collusion can lead to higher prices for consumers and reduced competition in the market.
Disadvantages of oligopoly?
1. Cartel: A cartel is when a group of firms decide to agree on leveling out the output. In some countries, output supply needed might be more than other countries or more than the specified output level. Thus, it might be a problem in some countries. 2. Collusions: Collusions are informal agreements done between firms in an oligopoly to ristrict competition. Thus, new firms my not be able to set up and this may cause dificiency of choice for customers.
Is predatory pricing an unfair practice?
Yes, predatory pricing is considered an unfair practice because it involves setting prices extremely low with the intent to drive competitors out of the market or deter new entrants. This tactic can lead to reduced competition and ultimately harm consumers by enabling a monopolistic environment where prices can rise once competitors are eliminated. Regulatory bodies often scrutinize such practices to ensure a fair and competitive marketplace.
Who Best states the main difference between a monopoly and monopolistic competition?
The main difference between a monopoly and monopolistic competition lies in the number of firms and the type of products they offer. A monopoly exists when a single firm dominates the market, offering a unique product with no close substitutes, allowing it to set prices without competition. In contrast, monopolistic competition features many firms that sell similar but differentiated products, leading to some degree of price-setting power while still facing competition. This results in a market where firms compete on factors beyond just price, such as quality and branding.
Should competition a group of companies or a standards-setting body decide the best operating system for smart phones?
A standards-setting body would be better. They would be independent from the phone companies - and thus have the consumers interests. Competition between companies simply 'squeezes out' those who refuse to conform with the majority decisions.
What does the bertrand model of oligopoly reveals?
The Bertrand model of oligopoly reveals that in a market with at least two firms producing identical products, competition on price can lead to a situation where prices are driven down to marginal cost. This outcome occurs because each firm has an incentive to undercut the other's price to capture the entire market. Unlike the Cournot model, which focuses on quantity competition, the Bertrand model demonstrates that price competition can lead to highly competitive outcomes, resulting in zero economic profits for firms in equilibrium. Ultimately, it highlights the importance of price-setting behavior in oligopolistic markets.
What has the author Margaret Bray written?
Margaret Bray has written: 'Price-setting oligopoly with customer search costs'
Disadvantages of oligopoly?
1. Cartel: A cartel is when a group of firms decide to agree on leveling out the output. In some countries, output supply needed might be more than other countries or more than the specified output level. Thus, it might be a problem in some countries. 2. Collusions: Collusions are informal agreements done between firms in an oligopoly to ristrict competition. Thus, new firms my not be able to set up and this may cause dificiency of choice for customers.
Who is credited with setting up Psychology as an independent field of scientific inquiry?
Wilhelm Wundt
Why set the selling price due to competition?
Competition is the biggest factor influence while setting the price because if set the price higher then competitor then competitor will outclass the product and if setting the price low then company will not able to compete and earn profit as much as competitors.
What is involved in setting the stage for compensation?
Competition for employees is often involved in setting the stage for compensation. Employees should be compensated for the amount of work they do as well as how well they do the job.
What are two external factors to be considered when setting the price for the product?
When setting the price of products organizations much consider competition. Another aspect the need to consider is the demand for their product.
In amigo brothers how does the setting effect Antonios internal conflict?
The setting of the story, where Antonio and Felix train and box in their neighborhood gym, contributes to Antonio's internal conflict by highlighting his conflicting feelings towards Felix. Despite their strong bond as friends, they both desire to win the boxing competition, creating a sense of competition and tension between them. Antonio's internal conflict is intensified within this setting as he struggles to reconcile his loyalty to his friend with his desire to emerge victorious in the competition.
Why does this situation seldom happen in market economie?
Competition eliminates shortages and surpluses by setting a market- clearing price.
What are the benefits of regulated market?
Regulated markets provide enhanced consumer protection by ensuring product safety, transparency, and fair pricing. They promote competition by setting standards that prevent monopolistic behaviors, fostering innovation and quality improvements. Additionally, regulation helps maintain market stability and reduces the risk of fraud, instilling greater confidence among consumers and investors. Overall, a regulated market contributes to a more equitable and efficient economic environment.
