Essays on Monopolist

Introduction

For understanding how the corn industry and the industry of water, I have interviewed with the marketing professionals from these two industries. Considering that marketing departments monitor the demand conditions, they can give us adequate information about their market.

Interviewer: What type of industry are you operating in? Marketing Professional 1: Producing corn requires using large lands, machinery, and knowledge of cultivating corn. Therefore, a company needs to have a high amount of financial resources to enter this market. Also, producing corn requires having the scientific knowledge for agricultural production. Changing climate and worse environmental conditions force us to ...

Introduction

The Bayer AG is a German multinational chemical company that deals in pharmaceutical and was founded in 1863 by Barmen. As a chemical and pharmaceutical company, Bayer AG was the first company to produce aspirin in large quantities at a time when it was considered the best cure in the world. From this point, Bayer AG has strategically placed itself from this time to control the cosmetics and pharmaceutical market in the UK and other reading partners that interact with the UK. In terms of business, Bayer AG has invested in doing research and coming up with new products ...

Introduction

Price was and remains the main tool that provides a proportional development of production and unity of interests of market relations. Basis for analyzing the structure of the economy, its challenges, opportunities and prospects for socio-economic development is based on the identification of the essential features of pricing, determining the structure of prices, price proportions. Successful economic development of any country or subject of a market economy depends on clear and effective functioning of the price, because they reflected the entirety of economic relations and the relationship between members of social production. This is possible if the mastery of ...

According to the modern market trend, the microwavable foods offered by brands such as Healthy Choice and Lean Cuisine have become a convenient option and an easy diet solution for busy people. These microwavable foods are easy to prepare and consume for the people having hectic lives. Thus, there are two growing competitors for this industry of low-calorie frozen, microwavable food. These two competitors have several common factors in their products such as product types and variety, nutritional level and price margin. However, according to the recent financials, Lean Cuisine and Healthy Choice, it had faced a significant drop ...

Introduction

Regulation of the activity of the business units is not new branch of the law. In fact, the local authorities in different jurisdictions attempt to exercise control over the performance over the companies by virtue of the adoption of different regulations. However, the commercial practices shows that this activity is not always efficient due to the fact that the companies refer to the supplementary instruments suitable for the completion economic growth in the market. This implies that several organizations usually enter special horizontal or vertical agreements in terms of the competition legislation that may be prosecuted by the authorities. ...

Tesla Motors Inc. is American energy storage and the automotive company that designs, manufactures and sells electric vehicle powertrain components and battery products. Tesla Motors is also a public company that trades on the NASDAQ stock exchange under the symbol TSLA (Carlson & Robertson, 2014). Tesla Motors company manufactures home and office battery charging equipment and has also installed a network of high-powered Superchargers across North America, Asia, and Europe. The company also operates a destination charging program where shops and restaurants among other venues are offered fast chargers for their customers. The market structure in which Tesla Motors competes ...

Introduction

Modern global economic system is a considerably distinct from the dogmatic frameworks of political economy (Mankiw, 2014). Professor Blanchard contests that extreme increase in production and substantial automation of the business processes have seriously changed the global economic landscape (2011). In order to stay competitive the companies have to develop and implement new business solutions, as well as they have to stay socially and environmentally responsible (Goldin, 2014). In addition, Gartner wrote that there is an increasingly important need to stay in line with the perpetually evolving customers’ preferences (2006), and the smallest disharmony with their predilections may result ...

Assignment 2: Operations Decision

Assignment 2: Operations Decision IntroductionCurrently, the options for microwave foods with low calorie have widened in the market. As the income of the people has gone up, the consumers can now have higher affordability towards an easy way of living; thus allowing for a change in the traditional rigorous ways of cooking used in yesteryears. Microwaves have now somewhat replaced the cooking methods used traditionally. As the popularity of microwaves has increased, the use of food items related to the same has also enhanced. Since there is such wide variety available for products, there can be an easy target ...

The demand function for a monopolist’s product is p=800-4q and the average cost per unit for producing q units is c=q+50+ 500q, where p = price, and q = quantity demand.

Description of the Project

Monopoly means that firm plays a role of the only seller on the market. In practice, a monopolist firm may have the highest market share significantly exceeding those of its competitors. It, in turn, constitutes that such a company has the power to independently influence prices on the market without regard to actions of its competitors. It’s an ideal situation that any company strives for. The main ...

Part A: Multiple Choice Questions:

The seller must have market power, that is the seller must have some control over price The seller must be able to identify different customer groups with different demand elasticities The seller must be able to prevent arbitrage between the two groups All of the above You’ve just decided to add a new line to your manufacturing plant. Compute the expected loss/profit from the line addition if you estimate the following:

There is a 70% chance that profits will increase by $100,000.

There is a 20% chance that profits will remain the same. There is a 10% chance that profits will decrease by $15,000. Loss of $15,000 ...

Month Day, Year

Introduction This purpose of this report is to an analysis different market structures in my local city. The report will assist my mayor to know the kind of businesses in the city. I will analyze the four market structures that I learned in class and then relate them to my local city. The market structures include monopoly, a situation in which there is only a single firm in a particular industry. Oligopoly is the second market structure, where there are a few enterprises and many buyers in a certain industry. The third is monopolist competition, whereby many sellers offer ...

Study

CONTENTS

Introduction 3

Question 1 – Market Structure Definitions 4 Question 2 – Unique Resources of Quasar Computers 5 Question 3 – Oligopoly and Competition 6 Question 4 –Porter’s Generic competitive strategies for different types of the market 6 Question 5 – Porter Five Forces Ranking and Attractiveness of Perfect Competition for Computer Industry 8 Conclusion 9

References 10

Introduction Throughout the history of the humankind, different markets have been tested by the economies (Frank, 2008). Despite the fact that advantages of ones and deficiencies of others types of market have been respectively eulogized or vigorously criticized by the different scholars, the practice ultimately revealed that ...

21.2 Theodore Roosevelt, from The New Nationalism (1910) 1. What does Theodore Roosevelt want the federal government to do in order to address problems created by business monopolies? Answer. Roosevelt professed the notion of progressivism to be implemented in the federal government’s action by increasing its participation in the socio-economic features, regardless of the constitutional regulations on the same (Theodore, 1910). He wanted the federal government to have an authoritative control of the capitalization of all the government and private corporations who were working within the state. Roosevelt implied that the government should take corrective and punitive actions ...

Distinguishing Features of Monopoly

A monopoly market is characterized by a single seller and a large number of buyers. The monopolist enjoys absolute market power. This is because there is no close substitute for the product. There are a number of factors that make a monopolist retain her market power. First of all, the monopolist may have the ownership of some strategic input required for the production of the good. This prevents any other manufacturer to produce the good as it will not have access to the input. Secondly, the monopolist may have innovated a new product and has taken the patent for ...

Introduction

In the present business world the assumption is that firms would like to maximize profits, but in the real life maximizing profit has a great impact on the society and the economy (Wigley 1996). Firms are classified according to the type of market structure they belong to. There are four types of market structure; perfect competition, monopoly, monopolistic, and oligopoly. The main factors that influences a market structure are; the number of buyers and sellers, the degree of product differentiation, the knowledge of buyers and sellers regarding a commodity and the strengths of barriers to entry and exit. Different industries ...

Answer 1)

A monopoly is characterized by one seller, well define product that has no substitutes. For a firm to maintain its monopoly position, it is essential that the barriers to the entry to the market are high. Although, this kind of market structure leads to deadweight loss in the society by producing lower than efficient output, but still there are many instances as in case of natural monopoly, where a society is served better by the monopolist than a competitive market structure.

A natural monopoly exist in a industry where a single firm can produce output such as to supply the market at lower ...

In many capitalist economies, the production of goods and services is controlled by the few who are able to produce the goods with minimal of without any competition. Such an economy is controlled by a few individuals who are able to produce or have been protected by the legistation. Such people who are able to produce goods for production are referred to as the monopolists. Monopoly in the marketplace indicates the existence of a sole seller. This may take the form of a unified business, organization, or it may be an association of separately controlled firms, which combine, or act together, for ...

Questions

1. Do you believe the labels that they were not acting in their own self-interest?

I do not believe that the labels were not acting in their own self-interest. By setting a price floor for their CDs (minimum advertised pricing) they were effectively able to control the revenue they would get. This ‘minimum price’ was set high and this led to higher profit margins at the expense of the consumers.2. Is this a price-fixing scheme or a pure case of altruism?

This was a case of price-fixing. By getting retailers to sell their CDs at an agreed price, the music labels were ...

a) Why the OPEC oil cartel succeeded in raising prices substantially while the Intergovernmental Council of Countries Exporters of Copper (CIPEC) copper cartel has not.

The Organization of the Petroleum Exporting Countries (OPEC) has succeeded in raising the price of oil substantially. For example, during the 1970s, the oil prices were increased by over 700 percent and this made the exporters of other natural resources imitate the OPEC model including the Intergovernmental Council of Copper Exporting Countries (CIPEC). However, CIPEC, unlike OPEC has failed to increase the price of copper. A number of reasons can be attributed to OPEC success including its control of about 76 percent of the world’s oil supply (Levenstein & Suslow 2006). Moreover, Oil has inelastic demand because it ...

Question one

The objective of every business entity regardless of their size to maximize profits and minimize costs. This is achieved by either maximizing their revenue and cutting down on expenses hence; the gap between costs and revenue increases. Businesses can achieve profitability by ensuring that they are economical on how they spend their resources and maximize the capacity of their productive apparatus. For example, they maximize the productivity rate of a machine by producing at the level where it is functioning optimally. The costs are cut down by ensuring that the unnecessary resources are preserved until the time they are needed ...

ECO/365

In this paper, the student discusses the different market structures with focus on the oligopoly market. The student identified he food processing industry as an oligopoly industry dominated by PepsiCo, Kraft Foods, and Nestle. Moreover, competitive strategies are presented for the maximization of profits in the long run as well as the strategies that the chosen organization (PepsiCo) might consider in maximizing profits.

I chose the food processing industry for the purpose of discussion in this paper. There are three world leading companies under this industry namely, PepsiCo, Nestle and Kraft Foods. It is stated in the book Rule ...

An ideal market place is one where demand is equal to supply leading to the right quantity of goods being supplied into the market. The goods that are supplied in the market must also be used or at least bought by the consumers in order to create a “perfect” market place. If this balance is changes or forced to change, then the resulting market would not be an ideal market. It would either be more goods supplied than demanded or more goods demanded then supplied. In either case, this will lead to higher than the actual or lower than the ...

INTRODUCTION

In order to come up with effective and efficient strategies, it is important to understand the dynamics of different market structures. Different market structures have different characteristics and features and operate differently. In this report, an attempt has been made to understand the different market structures and comments have been made on the different features and characteristics of these market structures.

MARKET STRUCTURE

A market is a group of individuals, firms and economic agents, who have interaction with each other as a buyer and seller. In economics market structures are defined into four main types, and that are perfect competition, monopolistic competition, monopoly, ...

Business Ethics Antitrust Law

Business Ethics Antitrust Law

Introduction

The antitrust laws aim at ensuring that all businesses in a given market play by the same rules. This is so because businesses in a free market may achieve the near-monopoly status via their own merits such as creating better production processes, offering the best quality service and decreasing costs among others. However, antitrust laws set vivid boundaries for fairness in the business by prohibiting practices that control free trading. It also restrains dominant firms from abusing their market position. The antitrust laws offer regulatory review of business mergers, acquisitions and joint ventures to ensure they do ...

Introduction

This paper is going to describe one of the most popular games in the world – “Monopoly”. The game was founded in United Stated, created by Parker Brothers. It gained its popularity in 20th century, and became one of the most played games in the world. The major idea behind this game is to build a monopoly (to become the only owner of the businesses) and become the most successful and powerful businessman in the game. Moreover, the main task of the player is to lead other players to the bankruptcy. However, the most fascinating merit of this game is that ...

- Explicit costs are those costs that are incurred and recorded in the financial statements. They are taken to be the cost of doing business, and incurred in the process of manufacturing or providing a service. For example, Cost of Labor, Material, Rent, Depreciation etc. Implicit costs are those costs that are incurred, but are not recorded. For example opportunity cost of capital by investing the funds in other businesses. Accounting profit is usually higher than the economic profits because it does not take into account the implicit costs of a business, because they are not the actual costs, but are ...

A market is a system through which the buyers and sellers of a product interact. Markets can be identified by the product it deals in. For example market for computer software, market for crude oil etc. Markets can also be distinguished by the geographical expanse like the local market or the international market for a product. In economic analysis it is more important and more usual to classify markets in terms of the degree of competition present in the market. In this mode of classification we consider two forms of market, the buyer’s market and the seller’s market. In ...

The welfare and income distribution in a market economy is largely influenced by the market structures prevailing in the economy. The degree of competition existing in the market can determine the distribution of wealth between the consumers, producers, workers, and others related to the system. It is a general notion among economists and policy makers that monopolization of the market works contrary to the principle of general economic welfare. The contention is based a number of arguments that favor a competitive market structure over a monopolistic one. The purpose of this paper is to analyze the arguments both in favor of and against monopoly ...

A monopoly is a market situation where there is only one seller but a number of buyers. The seller is the price maker. The monopolist enjoys absolute market power by virtue of which she can earn supernormal profit. The monopoly power depends, to a large extent, on the possible threats to competition. If the monopolist finds potential threat in terms of entry of competitive firms, the monopolist tries to take effective strategies to keep competitors at bay. The market power of the monopolist depends on how effective the entry barriers are. It is because of the entry barriers that he monopolist remains a ...

Oligopoly is a market structure in which only few firms are having control over market supply and since there are high barriers of entry and exit from the oligopoly market, the existing firms enjoy the monopoly kind position.( Parkin, 2011) Following are some of the salient features of Oligopoly Market: 1. Interdependence: Firms operating under oligopoly are interdependent in the decision making process. The reason for the same is that the number of firms operating and competing in the market are very few and any change in price or output level by one firm will have a direct influence ...

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Monopolistic and oligopolistic competition: theory and examples

Introduction One of the most important characteristics of an industry is its competitiveness. It often determines how profitable the businesses within this industry are or potentially can be, whether they have incentives to provide quality products and happy the customers are purchasing the products. In microeconomics, three types of market competition are usually being considered: monopoly, oligopoly and perfect competition. Monopoly implies that there is sole supplier of a good or service in the market who is a price setter and most often exploits its monopolistic power to derive excessive profits. The opposite to it is perfect ...

Executive Summary

Microsoft is the leading producer of software applications for personal computers and is largely responsible for making the personal computer present in every home or office.

Microsoft revolutionized the computer industry mainly through its operating systems, which started with MS-DOS in 1980. However, with the difficulty of its use, Microsoft came out with an operating system that had an interface, which was more user-friendly. This was Microsoft Windows, which underwent many versions throughout the last two decades.

Microsoft became the PC software company with the highest sales by 1988.

Windows became the most widely used operating system in the ...

Given that the new company is now run as a monopoly, how will this benefit the stakeholders involved, such as the government, businesses, and consumers?

In this scenario, two shrewd attorneys with financial influence exploited a condition in a liberal market to pool a previously fruitful industry. This made a situation in that they have no competition and they are prepared to vend! The administration consulting company they employed will coordinate the publicising, the lay-off of workers, and the fresh approach of operating. Subsequent to hours of investigation, I have established there are several views for and against this novel approach of monopoly (Maurya, ...

1 Introduction

According to Koutsoyiannis, a Monopoly can be defined as: a market situation in which there is a single seller, there are no close substitutes for the commodity it produces, there are barriers to entry (Khanna & Jain, 2010). Hence, a monopolistic company will have absolute market share, or in other word, the company is an industry all by itself. According to Baumoi, a Pure Monopoly is defined as: the firm that is also an industry. It is the only supplier of some particular commodity for which there exists no close substitute (Khanna & Jain, 2010). There are also Legal Monopolies, where a firm hold monopolistic ...

The differences undermines economists way of pricing. Another aspect apart from cost per product-that the social class of the consumers is incorporated in pricing.

The fixed costs are constant for a production period, say annually. The variable cost, which varies with number of units produced are distorted to reflect high amounts, which are intended to be high mark-ups for the vendor.

Cost of selling is very high, taking the case of perfume. This means that the perfume passes through very many stages, which will prompt each person to add some mark-up in order to get profit, hence raising the amount ...