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Why are firms in an oligopoly less independent in setting prices than firms in monopolistic competition?
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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.
Why does this situation seldom happen in market economie?
Competition eliminates shortages and surpluses by setting a market- clearing price.
What factor characterizes the competitive relationship between firms in an oligopoly market structure?
B. interdependence: what one firm does in setting prices, determining production levels, investing in R&D, and so forth can significantly affect other firms competitive positions.
How is pricing undertaken in pure competition?
Price setting and fixing comes under scrutiny by smaller independent companies and organizations. Larger companies can offset initial losses with long term sales; smaller companies can not afford to take any type of loss until a 150% profit has been posted. Some prices on goods have state minimums to avoid gross undercutting but most products fluctuate with the supply and demand.
What are economic setting of business?
the economics setting of business
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 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.
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.
Who is credited with setting up Psychology as an independent field of scientific inquiry?
Wilhelm Wundt
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 is 3C Model for price Setting?
The 3 C's model for setting pricestakes into account the customer, our costs, and the competition. Customer's perception about the various attributes of the products, competitor's pricing and our own total costs.
What type of evidence to look for in a natural setting to indicate that there is competition taking place among the plants?
Some release toxins into the soil in their dropped leaves to wipe out the competition for soil nutrients (weeds and such). In an area with many trees in close proximity such as a forest, height is also indicative of competition for light.
What type of evidence would you look for in a natural setting to indicate that there is competition taking place among the plants?
Some release toxins into the soil in their dropped leaves to wipe out the competition for soil nutrients (weeds and such). In an area with many trees in close proximity such as a forest, height is also indicative of competition for light.
