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Do mergers between firms producing similar goods and services always benefit consumers?
No. They CAN, if there is a redudancy in fixed costs which can be pared and spared, but they can also result in a monopoly or, nearly as bad, an oligopoly. These situations tend to raise prices, because the producers are the only (or one of a vew few) game in town, so to speak.
What is a key feature of an oligopoly?
An oligopoly is market form in which a market is dominated by a small number of sellers (oligopolists). The word is derived from the Greek for few sellers. Because there are few participants in this type of market, each oligopolist is aware of the actions of the others. Oligopolistic markets are characterised by interactivity. The decisions of one firm influence, and are influenced by, the decisions of other firms. Strategic planning by oligopolists always involves taking into account the likely responses of the other market participants. An oligopy is a form of economy. As a quantitative description of oligopoly, the four-firm concentration ratio is often utilized. This measure expresses the market share of the four largest firms in an industry as a percentage. Using this measure, an oligopoly is defined as a market in which the four-firm concentration ratio is above 40%. An example would be Indian mobile industry , with a four-firm concentration ratio of over 70% and the cold drink industry also in the U.S.A has a two firm concentration ratio of a staggering 85%. In an oligopoly, firms operate under imperfect competition, the demand curve is kinked to reflect inelasticity below market price and elasticity above market price, the product or service firms offer are differentiated and barriers to entry are strong. Following from the fierce price competitiveness created by this sticky-upward demand curve, firms utilize non-price competition in order to accrue greater revenue and market share. In industrialized countries oligopolies are found in many sectors of the economy, such as cars, consumer goods, and steel production. Unprecedented levels of competition, fueled by increasing globalisation, have resulted in the emergence of oligopsony in many market sectors, such as the aerospace industry. There are now only a small number of manufacturers of civil passenger aircraft. A further instance arises in a heavily regulated market such as wireless communications. Typically the state will license only two or three providers of cellular phone services. Oligopolistic competition can give rise to a wide range of different outcomes. In some situations, the firms may collude to raise prices and restrict production in the same way as a monopoly. Where there is a formal agreement for such collusion, this is known as a cartel. Firms often collude in an attempt to stabilise unstable markets, so as to reduce the risks inherent in these markets for investment and product development. There are legal restrictions on such collusion in most countries. There does not have to be a formal agreement for collusion to take place (although for the act to be illegal there must be a real communication between companies) - for example, in some industries, there may be an acknowledged market leader which informally sets prices to which other producers respond, known as price leadership.
What is monopoly duopoly and oligopoly?
Monopoly is a form of market structure of imperfect competition mainly characterized by the existence of a sole seller and many buyers. This type of market is associated with entry and exit barriers.Duopoly, A type of oligopoly. This kind of imperfect competition is characterized by having only two firms in the market producing homogeneous goods. Oligopolies are structured by analyzing duopolies.Oligopoly- considered as half way between two extremes, perfect competition and monopolies. This kind of imperfect competition is characterized by having a scarce amount of firms, but always more than one, but produce homogeneous goods. Due to the small number of firms in the market, the strategies between firms will be interdependent, thus, implying that the profits of an oligopolistic firm will highly depend on their competitors actions.Salim Ali Al Shedi
Why is it that firms can earn profits in the long run in monopoly and oligopoly but not in monopolistic competition and perfect competition?
Because monopolistically competitive firms have an optimal production allocation at monopoly values: marginal revenue = marginal cost, marking-up to the demand function. When competition is not perfect, marginal revenue does not equal demand but is always below it on a Cartesian plane, so the optimal production value of a monopolistically competitive firm is both less and at a higher price than a perfectly competitive one.
What is the name of the organization that controls oil?
There was a time when the organization called OPEC, was a group of oil producing nations that were almost always in agreement regarding the amount of petroleum that would be produced and what the price per barrel of oil would be. This is no longer a factor in the price and production of petroleum. Currently, it can be said that the free market now makes these decisions.
Love is fragile and we're not always its best caretakers?
Love is fragile. And we're not always its best caretakers. We just muddle through and do the best we can. And hope this fragile thing survives against all odds.
Is china always packed?
China tableware should always be packed carefully for despatch, it is fragile.
What is the full quote from The Last Song that starts with Love is fragile and we're not always its best caretakers?
"Love is fragile and we're not always its best caretakers. We just muddle through and do the best we can, hoping this fragile thing survives against all odds." - The Last Song
Is written agreement necessary in legal consultancy?
Yes it is always better to have everything in black and white where an agreement is concerned , as there should be no misunderstanding later on.
State of Missouri custody agreement does a new spouse after the agreement was made count as a family member?
yes, but it's always best to clarify in the order. see link
Is it bad to vomit blood during pregnancy?
Vomiting blood is always a bad sign. This is especially true during pregnancy as your body is in a fragile state.
What is an agreement between four justices always sufficient for?
Grant certiorari, or agree to review the case
Can a down payment be in a verbal agreement?
No! When working with loans, debts, and repossessions, always get everything in writing.
9 Why did Japan sign the Tripartite Agreement Axis?
Friends are always welcome when involved in a war.
What are the disadvantage of laptop?
DISADVANTAGESMay freeze occasionally.May not have internet.Screen may be fragile and break easily.Problems with logging in or internet connection.
How would the opinions of delegates to the second continental congress best be characterized?
They were not always in agreement, but were open to compromise.
Does a Facebook chat response count as a legally binding agreement?
In general, a Facebook chat response alone is unlikely to be considered a legally binding agreement. Formal legal agreements typically require more evidence of intent and mutual agreement. However, it's always advisable to consult with a lawyer for specific legal advice related to your situation.
