Essays on Uncompetitive

American Public University

Many of the economics books inform us that perfect competition is better than uncompetitive markets because it enables the markets to use the resources efficiently. In the perfect competition markets, producers give importance to decrease costs and increase the quality of products because the market price is given and their profits are limited with this given price while, in the uncompetitive markets, the companies play a game to maximize their profits theoretically. Monopoly is the worst version of the uncompetitive market because there is one dominant company in a market and the entry to the market is not possible. ...

How much a firm can grow

Sustainable Growth Rate: How much a firm can grow A company requires capital to finance the growth. This can be achieved by using internally generated funds, or by issuing new equity shares. But, it has been observed that companies show reluctance in issuing new equity to raise capital (Firer, 1995, p-57). Without recourse to new equity capital, there is a limit to the growth of the company. The company can grow without opting for external equity finance by altering its present financial structure.

Sustainable Growth Rate and its Importance

There exists an important relation between growth in sales, and increase in assets and equity. Rapid ...

Introduction

Jessops was founded in 1935 by Frank Jessop Simmons well known around the world for its broad expertise and experience in the photographic industry. While Jessop was a leader in the industry for many years, technological and market changes over the last few decades led to a significant decline in its sales and profitability. By early 2013, it stores closed and it stock ceased being traded. However, soon after this British entrepreneur Peter Jones invested millions of pounds into the business and reopen 36 of the Jessops stores (BBC News Online a). He hoped to turn the business around. ...

What is a cartel? (5 marks)

The companies in a market might collude to set the prices by making explicit or implicit agreements between them on the market price, sharing the market geographically, or controlling the quantity supplied in the market. The agreement between the companies in a specific market might create an oligopoly behaving like a monopoly. The companies might set the price, and all the agreement partners might obey the agreement. If the companies can create a large market power, they might behave like one monopolist. Cartel is the situation of existence of an explicit or implicit agreement between the companies in a ...

American Public University

Inventing a new thing which has the potential of being widely used by the people might create essential opportunities for the invention owners. The companies or people working on new inventions and innovations have the chance to be the leader in their industries or societies. In simple words, inventing or innovating brings an essential power to its owners. However, there is a high risk of losing these opportunities because the other people or companies might steal the idea of invention or innovation. In this case, inventing or innovating does not provide any power because all the people or the ...