scenario 1) Oligopolies are markets where a few firms like Walmart and HyVee control the market. Oligopolies
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
It was very interesting to learn about the cartel and the history of legal issues within companies. An oligopolistic market is characterized by a small number of dominant firms that control the industry. They have limited competition, interdependence among company decisions, and barriers to entry. Oligopolies set prices through conspiracy methods, where firms cooperate to fix prices, or price leadership, where one firm's pricing action guides others. Within an oligopoly, a few powerful firms dominate the market, often with similar products. Entry barriers are high, and firms' strategies heavily affect each other's decision. In monopolistic competition, numerous firms compete with differentiated products and lower entry barriers. For instance, the smartphone industry (Iphone, Samsung) is an oligopoly due to being the dominant players and high barriers, while the fast-food sector (McDonald's, Burger King) is monopolistically competitive, with many other companies with different offerings. It was very interesting to learn about the cartel and the history of legal issues within companies. An oligopolistic market is characterized by a small number of dominant firms that control the industry. They have limited competition, interdependence among company decisions, and barriers to entry. Oligopolies set prices through conspiracy methods, where firms cooperate to fix prices, or price leadership, where one firm's pricing action guides others. Within an oligopoly, a few powerful firms dominate the market, often with similar products. Entry barriers are high, and firms' strategies heavily affect each other's decision. In monopolistic competition, numerous firms compete with differentiated products and lower entry barriers. For instance, the smartphone industry (Iphone, Samsung) is an oligopoly due to being the dominant players and high barriers, while the fast-food sector (McDonald's, Burger King) is monopolistically competitive, with many other companies with different offerings.
Expert Answer:
Answer rating: 100% (QA)
Scenario 1 Oligopolies and Monopolistic Competition In an oligopoly a few firms dominate the market leading to limited competition and interdependence in decisionmaking Collusion where firms conspire ... View the full answer
Related Book For
Business Ethics A Stakeholder And Issues Management Approach
ISBN: 9781523091546
7th Edition
Authors: Joseph W. Weiss
Posted Date:
Students also viewed these finance questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
1. How strong are the competitive forces confronting J. Crew in the market for specialty retail? Do a [Michael Porter] five-forces analysis to support your answer. (see chapter 3 in the textfor...
-
Carey Company is borrowing $200,000 for one year at 12 percent from Second Intrastate Bank. The bank requires a 20 percent compensating balance. What is the effective rate of interest? What would the...
-
The Flatiron Pub provides catering services to local businesses. The following information was available for Flatiron for the years ended December 31, 2018 and 2019. Flatiron management is preparing...
-
A supermarket wants to see the effects of coupons on spending. They believe that male and female heads of households will respond differently to the coupons. The supermarket chooses 200 males and 200...
-
Fresh Food Direct, LLC, entered into a lease agreement with Jet Star Realty, LLC. Fresh Food terminated the lease before its terms end, and the parties disputed the amount of rent that Fresh Food...
-
True or False. Write T if the corresponding statement is true. If the statement is false, write F and state what changes should be made to make it a true statement. 1. Activities of a general purpose...
-
If Bob faces a 20% chance of losing $20 or an 80% chance of losing nothing. What is the expected loss and variance?
-
Goldie and Kurt want advice from your financial advising firm. They have provided the following information. They graduated from university four years ago and they have good jobs, but neither of them...
-
This is a timely discussion given the current global events surrounding the pandemic, Markets are interconnected and can be fragile. The US stock market is down again today, based on Congress not...
-
Find the following F 1;2; values. (a) v = 10, V2 = 10, and = .05 Vi (b) v = 15, v = (c) v = 12, v = V2 (d) v = 20, V2 = 3, and x = .01 15, and x = .025 10, and x = .005
-
A credit manager at the Bargain Basement Department Store is interested in the proportion of customers who pay their credit card balances in full each month. A random sample of 200 customers...
-
This industry dates back thousands of years, is visible in TV news, is global in nature, and has annual sales of $100 billion. Yet participants do not even agree on how to label it, and most...
-
Reconstruct the confidence interval for the mean home prices given in question 18, but this time construct a 99 % confidence interval. What happens to the size of the confidence interval? Question 18...
-
A quality control engineer believes that the life of light bulbs for his company is normally distributed with a standard deviation of 100 h. A random sample of 10 light bulbs gives the following...
-
In the previous period,Alex company produced 13,750 units. Total costs and unit costs incurred were as follows: Statements Total Costs Unit Costs Variable production costs Direct materials and parts...
-
The relationship described in question 7 does not always appear to hold. What factors, besides the number of firms in the market, might affect margins?
-
Explain the strengths and weaknesses of organizational (a) Ethics codes, (b) Ombuds and peer-review programs, (c) Ethics departments.
-
Which roles and responsibilities in this chapter have you assumed in an organization? What pressures did you experience in that role that presented ethical dilemmas or issues for you? Explain.
-
Genetic discrimination is defined by the Centers for Disease Control and Prevention as prejudice against those who have or are likely to develop an inherited disorder. With advances in science, it is...
-
Show that the relations (14.23) follow from Eqs. (14.21) and (14.22). Data from Eq. 14.21 Data from Eq. 14.22 Data from Eq. 14.23 VR (P) = E+m+o.p VR (0) 2m(E+m)
-
Verify that the Pauli-Dirac representation (14.43) satisfies Eq. (14.27). Data from Eq. 14.27 Data from Eq. 14.43 {,} = + = 2
-
Verify the projection characteristics implied by equations (14.51). Data from Eq.14.51 2 In = (s + I) Da 1- 24(1-y's) = UR
Study smarter with the SolutionInn App