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    Firms in Competitive Markets

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    Review the following questions and prepare a four to five page report on any three of the following issues:

    1. Firms in Competitive Markets

    Florida Citrus Web Site Go to http://www.floridajuice.com/. The "Florida Citrus Web Site" is sponsored by the Florida Department of Citrus on behalf of the State's Orange Industry. Among other things, the site is clearly an advertisement for the state's orange industry. Have you ever seen or do you expect to see advertising for individual orange growers? Why? In terms of demand and supply, what is the purpose of the "Florida Citrus Web Site?"

    2. Monopoly

    Bottled Water Go to http://www.perrier.com/. Does a monopoly firm produce this product? Explain.

    3. Monopolistic

    Monopolistic Competition on the Web Go to http://www.msn.com/, http://www.aol.com/, and http://www.cs.com. Browse around each page. Are these three Internet services participating in a monopolistically competitive market? Explain.

    4. Oligopoly

    The OPEC Oil Cartel Go to www.opec.org. What are the organization's stated goals, which countries are members, and when was it founded? Is it normal for them to be successful in keeping oil prices high, or have they faced difficulties in keeping the cartel united in the past?

    5. Antitrust Enforcement and the Consumer

    Go to http://www.usdoj.gov/atr/overview.html. This is the United States Department of Justice's view of its role in antitrust enforcement. Do you think the U. S. Government is doing enough in this area? be specific citing examples.

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    Solution Preview

    The response addresses the queries posted in 1422 words with references.

    //Before writing about the main issues concerned with the competitive market place, we will write about the critical issues that arise in the market. It will assist in understanding the market and its structure effectively.//

    Critical Issues in the market

    After reviewing the following questions, I have selected three critical issues I.e. Firms in competitive market, monopolistic & antitrust enforcement and the consumer. All these stated issues are very critical in order to understand that which market structure is more suitable for the firm according to their requirements. Market structure is the one of the most commonly used approaches to study the behavior of the firms in an economy. Proper understanding of the market structure helps in effective decision making and also helps the industries or business firms to earn profit in the long run. It also helps in analyzing the role of demand and supply in the price discrimination. The detail reports that cover all the three stated above issues are as follows:

    //Above, we identified the critical issues in the market. Now, we will write about the firms in competitive markets. It will assist in analyzing the critical issue of Florida Citrus Web Site on the basis of its advertising. Along with this, the impact of advertising on the demand and supply will also be discussed.//

    Firms in competitive market

    The critical issue with the 'Florida Citrus Web Site' that 'Is there any separate advertising for the individual growers or there is common advertising for the state orange industry?' Firms in the competitive market end up being collegial, it means that the individual orange growers or firms in perfect competition are price takers I.e. Firms only takes the market price as given for their products rather than determining the price for their products through its own behavior. In this market structure, individual seller is an unimportant player in the market because all the firms in the industry farm the identical products like in Florida Citrus, all the individual orange growers' farm oranges. Thus, it is concluded that in this competitive market, every individual orange grower have perfect knowledge about the prices that are being cited for the goods in the market and no one 'one-sidedly' affect the market share and price of the products.

    As per my past experience, I never saw any advertising for individual orange growers. But, I expect to see advertising for individual orange growers, so that I will easily differentiate the different orange grower's product on the basis of their quality & variety. With the separate advertising, we easily key out what identical feature makes its product different from the other orange growers. ...

    Solution Summary

    The response addresses the queries posted in 1422 words with references.