Business Analysis Perfect Competition - 1466 Words

You have been hired as a consultant by your local mayor to look at the various market structures. Your role is to provide analysis and answers to these important questions that will help the mayor understand the structures of many of the businesses in his city: Describe each market structure discussed in the course (perfect competition, monopolistic competition, oligopoly, and monopoly) and discuss two of the market characteristics of each market structure. Perfect competition describes a marketplace that no one participant can set the market price of an exchangeable product. This is generally considered an ideal, rarely found in markets today. There are some approximations, such as online auctions, such as eBay. Such firms’ demand curves are perfectly elastic. These markets are theorized to have an unlimited number of buyers and sellers. There are likewise no barriers to entry or exit. Monopolistic competition describes a marketplace offering differentiated products, and as such are not perfect substitutes. This is found in restaurants, shoes and other preference-driven goods. Such firms find a high elasticity of demand (in the long run), likely excess profits in the short term, and price setting available to them (as there are no perfect substitutes for their products; competitor prices are ignored). Oligopoly refers to an industry dominated by a small number of sellers with market power. They have the ability to limit or discount competition, and artificially earn excessShow MoreRelatedPestle Analysis Of Mcdonalds1628 Words   |  7 PagesPESTLE analysis PESTLE is the analysis of the factors that could affect a business on a macro level. McDonalds franchise strategizes issues identified in this PESTLE analysis. The PESTLE analysis model determines the different external factors that offers opportunities or threats to the business based on its macro-environment. In the global fast food restaurant market, McDonalds is focused on economic and sociocultural factors. Nonetheless, the company’s success is indicative of its effective strategiesRead MoreArgument Against Perfect Competition Theory Essay1551 Words   |  7 Pages3.0 Argument against Perfect Competition Theory Theory of perfect competition has severe shortcomings that limit its application in business. Generally, its assumptions fail to hold in the real world, which makes the theory implausible as discussed below. Firstly, it assumes that buyers and sellers are price takers in the market. As such, it presumes that there are many buyers and sellers that are insignificant and equally small for the conditions of perfect competition to exist. However, in eachRead MoreA Research Study On An Academic Research Essay1658 Words   |  7 Pagesfull time careers. In particular, it provides knowledge and background principles that will be used in future analysis. It is important to note that there are research objectives; as such, it ensures that certain goals are met at the end of the activity. Therefore, this paper will entail research on the Perfect Competition Theory to determine its validity and reliability in market analysis. Firstly, the paper will outline the objectives of the research and provide methodologies applied. Secondly,Read MoreEssay on BP and Consolidation of Oil Industry, 1998-20021491 Words   |  6 Pagesits business and start a new business, a clean energy production, because it would lose profits from oil supply. Oil industry had not developed in perfect competition; oil price was easily controlled since oil industry was oligopoly, many consumers exist and the government protected oil industry from competition. However, oil industry is facing perfect competition; oligopoly formation of oil industry would come to perfect competition because OPEC started apart from each other. This perfect competitionRead MoreBig Bazar Price Control on Customer Demand1735 Words   |  7 Pages–Retail management Case Study Project :-As a retail manager how will you achieve business by decision making focused on price offer and demand pressure from customer ,on availability of product ? Examine the strategy you will adopt in retail chain business (Big Bazaar). Answer: As a retail manager in Big Bazar we need to understand the organized retail and how we operate in India along with the SWOT analysis, Then I will look for the Price mix and factors related to this. What is Big BazarRead MoreBig Bazar Price Control on Customer Demand1727 Words   |  7 PagesElective –Retail management Case Study Project :-As a retail manager how will you achieve business by decision making focused on price offer and demand pressure from customer ,on availability of product ? Examine the strategy you will adopt in retail chain business (Big Bazaar). Answer: As a retail manager in Big Bazar we need to understand the organized retail and how we operate in India along with the SWOT analysis, Then I will look for the Price mix and factors related to this. What is Big Bazar andRead MoreThe Strength of Competitive Analysis905 Words   |  4 PagesOUTLINE INTRODUCTION: Competition Theories Compete It is never doubted by academic circles and business environments that the strength of competitive analysis, if not the top, is one of the most important critical success factors in creating and managing marketing strategies. The way a business adapts to competitive environments, characteristic of its focus being self-centered, competitor-centered, customer-driven or market driven (Day and Nebugandi, 1994), will define its placeRead MoreThe Product Is Technology Dependent811 Words   |  4 Pagesdirectly influence the business, its quality, operation, and success. The Legal legislation also has a critical impact on the business. The change in legislation can directly influence the business performance and its success. In the changing world of business, the business has to contribute to the community, surrounding, and the environment. This is critical for the customer loyalty and trust. If the business fails to do that the customers are unable to relate to the business and that adversely affectRead MoreEssay on International Business Structure963 Words   |  4 Pagesto market structures, these are oligopoly, monopoly, perfect competition and monopolistic competition. Each theory has its individual assumptions and norms. In turn, these theories will be analysed, compared and contrasted with real life examples. The market structure related to each business reflects the profit maximisation and productions of the firms. The demand curve will also vary depending on the market structure; MC=MR. Perfect competition is representative of a competitive market; customaryRead MoreA Monopoly Is A Single Seller951 Words   |  4 PagesMonopolies are thus characterized by a lack of economic competition to produce the good or service, a lack of viable substitute goods, and the existence of a high monopoly price well above the firm s marginal cost that leads to a high monopoly profit.[3] The verb monopolise refers to the process by which a company gains the ability to raise prices or exclude competitors. In economics, a monopoly is a single seller. In law, a monopoly is a business entity that has significant market power, that is,