Monopolistic competition (0)

Sarnased õppematerjalid

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Pure Competition

Pure Competition Competition The word "competition" may be used in two ways: ­ rivalry ­ (synonym; opposition, antagonism) ­ structural competition or "pure competition" The main characteristics of competition: 1. Number of firms 2. Type of product 3. Control over price 4. Conditions of entry 5. Nonprice competition 6. Information flow Pure Competition · Involves very large numbers of sellers and buyers. · Firms producing identical or homogeneous products. · Standardized product (a product identical to that of other producers). (ex. corn or cucumbers). · Free Entry and Exit: no significant legal, technological, financial, or other obstacles prohibiting new firms from selling their output in any competitive market

Micro_macro ökonoomika

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Monopoly

Monopoly Market Power In pure competition sellers are "price takers." ­ No seller (or buyer) has the ability to influence the market price. In most markets, at least one or more of the conditions required for pure competition are violated. This gives sellers or buyers the ability to influence the market price and allocation of resources Pure competition results in an optimal allocation or resources given the objective of an economic system to allocate resources to their highest valued uses or to allocate relative scarce resource to maximize the satisfaction of (unlimited) wants in a cultural context. Pure competition is the ideal that is be benchmark to evaluate the performance markets. The economic theory of · monopolistic competitive markets, · oligopoly and · monopoly

Micro_macro ökonoomika

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The cost of production

Economies of scale may be utilized by any size firm expanding its scale of operation. The common ones are - purchasing (bulk buying of materials through long-term contracts), - managerial (increasing the specialization of managers), Why are economies of scale important? - Firstly, because a large business can pass on lower costs to customers through lower prices and increase its share of a market. This poses a threat to smaller businesses that can be "undercut" by the competition - Secondly, a business could choose to maintain its current price for its product and accept higher profit margins. The LRAC LRAC is "U-Shaped" · The LRAC initially decreases due to "economies of scale" ­ Economies of scale are due to division of labour. · Eventually, "diseconomies of scale" begin ­ usually lack of adequate information to manage the production process

Micro_macro ökonoomika

7

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Demand and Supply

provided. · Given the information and incentives, agents within markets can adjust to changes. The process of market adjustment can be visualized as changes in demand and/or supply. · Markets include all potential buyers and sellers ­ geographic boundaries of market ­ markets defined by nature of product and characteristics of buyers ­ conditions of entry into market ­ markets, competition and substitutes Markets include all "potential buyers and sellers" ­ behavior of buyers is represented by "demand" (benefits side of model) ­ behavior of sellers is represented by "supply" (cost side of model) Definition: "A schedule of the quantities of a good that buyers are willing and able to purchase at each possible price during a period of time, other things held constant" · Demand can also be perceived as a schedule of the maximum prices buyers

Micro_macro ökonoomika

40

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Introduction of SCM

supply chain partners does not make companies more competitive. Transferring cost upstream or downstream leads to "logistics myopia" as all costs ultimately will make way to the final market place to be reflected in the price paid by the end user. Therefore, the leading edge companies seek to make the supply chain as a hole more competitive through the value it adds and the cost it reduces overall. Thus today the real competition is not the companies against the companies but rather supply chain against supply chain. DEFINITIONS Supply Chain Management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption.

Kategoriseerimata

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Mikro ja makroökonoomika terminid

производства Eesti keeles English На русском Turg. Nõudlus ja pakkumine. Market. Demand and supply. Рынок.Спрос и предложение. Эластичность. Täieliku konkurentsi turg Perfekt competition market Рынок совершенной конкуренции Nõudlus Demand Спрос Pakkumine Supply Предложение Nõudluskõver Demand Curve Кривая спроса Nõudlusseadus Law of Demand Кривая предложения

Majandus

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Market and marketing

Secondly, modern marketing begins with the consumers: Producers in earlier times had little care for the consumers. Now, production is carried on in large quantity. The manufacturers produce more than what people need. Market has developed form national to international. Competition is the order of the day. Businessman have started realizing that earing profit is possible only through the consumer’s satisfaction. Thirdly, modern marketing begins before production: earlier there was less competition and as such sales were easily made. But now this stage has changed. The consumer looks for the usefulness and acceptability of product. As such it has become necessary to find out the needs and desires of costumers through market research. The information from the market or the costumer will decide the future of the product. Finally, modern marketing is a guiding element: At present competition, has increased because many manufactures produce similar goods in large quantities

Inglise keel

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Monopoly paper / DeBeers monopol

De Beers executives are at last free to visit and work directly in the largest diamond market, America. (Johannesburg. Windhoek 2004) DeBeers agreed to pay fine, but they was not certify that they are guilty. For conclusion of this case they were still winners, because the fine was not fateful to them and they were legally back again in American market, which is world's largest diamond market as we see on Table 2. Also the EU went to court with DeBeers to decrease their monopolistic position in Europe. In February 2006 European Commission decided that: World No. 1 diamond producer De Beers settled a monopoly abuse case with the European Commission by agreeing not to buy rough diamonds from Russian diamond miner Alrosa from 2009. The Commission said this would make more diamonds available in the market. (Miningmx 2009) With this sort moves they will decrease DeBeers monopoly and hope to get diamonds prices not so high.

Mikromajandus

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