Lotus Rental Car wants to reduce expenses and increase their consumer base by adding new fuel efficient and alternative fuel vehicles to the Lotus fleet if these measures would be profitable. Key problems With the high demand for car rentals, and having more ecologically aware consumers, keeping alternative fuel vehicles in stock has been difficult. Hertz Rental Car Corporation has 4,000 hybrids throughout the United States, rents the hybrids for more money and still has a higher demand than supply. The demand for the hybrids has jumped 40% in the last year. Because of high consumer demand, auto manufacturers do not offer big discounts to commercial accounts.
Target could have very well been in the monopolistic competition structure but did meet some of the structure points. Monopolistic competition structure has many firms and do not usually take into account the responses of other firms. This was the main difference between oligopoly and Monopolistic competition. Wal-Mart, K-Mart, Costco, and the few others in the scope of this type of retail chains are more considered a few than many. They all tend to react to each other’s
589-590) A natural monopoly is where one company produces a product at a lower cost to the consumer than any other company. In a natural monopoly the competition is not economic. An oligopoly is when there are several companies producing a product, instead of only one. (McConnell, 2008, pp. 455-457) They also act like a monopoly because they can control their prices.
In the next chapter we learn how sellers set the prices in which we pay for an item, why things cost what they do and not what they are worth. The key to prices are sellers that can sell their products as close to the cost of making the item. In a regular market, prices are the key. Businesses cannot afford to charge a higher price, customers are normally looking for a lower price and the lower the better, in today’s economy. Many customers ask the question, “What affects prices?” We learn that things happen beyond the sellers’ and buyers’ control to raise and lower prices in today’s market.
A monopolistic Competition market has many sellers and provides good substitutes but differentiates their products from other companies. The nature of competition in a monopolistic market focuses on marketing, special features and pricing (Colander, 2010). Kudler Fine Foods has only a few competitors in the market that offers the same products and service to its customers. This market structure has negative and positive effects. A positive effect of Kudler Fine Foods in a monopolistic market structure is that they lead in the market and can increase competition between companies and make massive profits by setting higher prices (Colander, 2010).
They make their own prices, which would in most cases be more of a benefit to the producer. Both structures make it very difficult for others to enter the industry, limiting and sometimes blocking entry and competition. Industrial Regulation seeks to prevent unfair practices of restricting market entry, opening markets up for competition. Ideally, prices with regulate themselves in a fair competition, preventing one or a few companies from setting the prices that would be deemed as inappropriate. It also works to prevent the practices of unfair pricing and charging higher prices to consumers while the companies produce less product, limiting choices for consumers.
People struggle to fill up there tanks in a truck the reason why is because of gas prizes coming to their highest. Trucks have bigger engines which use a lot more gas then cars. Also these two have maintenance in common. Weather if you have a car or truck they will both get you to where you want to go regardless of gas prizes. Of course you are a lot saver in a truck then a
The increase of gas prices hurt the benefit of motorists. Because of the ridiculous high gas prices, many people have to choose pool car to share the transportation/gas fees with other people or use public transportation. For instance, my uncle, who lives in Foster City and works at downtown San Francisco, drives to work every day. However, when the gas prices went up, he had to take Caltrain-a kind of public transportation to go to work since it was cheaper than drive. However, it took longer time to go to work since he just needed 40 minutes to drive to work but he needed more or less two hours to go to work by Caltrain.
To compare and contrast multiple units, each unit needs to be defined to identify properly the similarities and dissimilarities. In this instance, the units compared and contrasted are public and private goods, common resources, and natural monopolies. The first step in the analysis of the stated units is to define what they are. A natural monopoly occurs when one firm can supply the entire market demand at a total average cost lower than that of two or more firms because of extreme economies of scale. An example of a natural monopoly is public utilities.
The micro-macro dilemma is based on the fact that what is good for companies and consumers may not be good for society as a whole. This can relate to a number of things, including high-powered engines in cars, nuclear power, and bank credit cards. High-powered engines in cars are an example of this because they use high amounts of fuel, and also create more damage to the environment, thus making them less advantageous for society. Consumers like them because they enjoy the speed that the cars go, the luxury of having a larger automobile, and more often than not, they have multiple cars for a household. Companies profit off of them because they are typically more expensive and ensure a future for the company.