Welcome

Anti Essays offers essay examples to help students with their essay writing.

Sign Up

Giahanbeam Essay

Open Document

Below is an essay on "Giahanbeam" from Anti Essays, your source for research papers, essays, and term paper examples.

Four Market Models[pic]
From most competitive to least competitive:

Pure Competition:
    • Involves very large numbers of firms producing identical products.
    • Standardized product (a product identical to that of other producers--ex. corn or cucumbers).
        o no attempt to advertise or differentiate
    • Free Entry and Exit: no significant legal, technological, financial, or other obstacles prohibiting new firms from selling their output in any competitive market
    • No control over the price: "Price Takers"
    • (i.e. the firms have no market power) .
        o The individual firm has very little to no impact on the market.
    • Demand is perfectly elastic.
Maximizes productive and allocative efficiency.
    • ex. Agriculture
    • pure competition markets do not actually exist.
Note: Pure competition does not actually exist in our society, and the agriculture industry is the closest industry to being purely competitive. The pure competition model is used as a standard to evaluate the efficiency of our economy (something to compare to and help our understanding of economy.)

Monopolistic Competition:
    • Involves large number of firms, but not as many as in pure competition.
    • Produces differentiated products (ie. clothing, furniture, books)
        o Nonprice competition - a selling strategy in which firms try to distinguish their product or service on the basis of attributes such as design and workmanship (product differentiation)
        o Focuses mostly on advertising, brand names, and trademarks
    • Firms can easily enter or leave this market, although not as easily as firms in a purely competitive market.
    • Imperfect Competition.
    • Limited control over prices
        o ex. retail trade, dresses, shoes

Oligopoly:
    • Involves a few firms that exert considerable influence over the industry
    • Produces either standardized or differentiated products.
    • NONPRICE COMPETITION: emphasis on...

Show More


  • Submitted by: giahanbeam1998
  • on December 24, 2011
  • Category: Business and Economics
  • Length: 408 words
  • Views: 295
  • Popularity Rank: 463028
  • 1 rating(s)

Related Essays

Citations

MLA Citation

"Giahanbeam". Anti Essays. 10 Dec. 2018

<https://www.antiessays.com/free-essays/Giahanbeam-147899.html>

APA Citation

Giahanbeam. Anti Essays. Retrieved December 10, 2018, from the World Wide Web: https://www.antiessays.com/free-essays/Giahanbeam-147899.html