Explore BrainMass

Market Structures

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

1) Over the course of a product life cycle, as the firm moves through the sequence of monopoly, oligopoly, monopolistic competition, and pure competition, the profit opportunities diminish. What strategies could the firm pursue to prolong its profitability?

2) Firms that operate in an oligopoly must take into consideration how competitors will react to their price and output decisions. In addition to the model used in the simulation, what other strategies might govern how one competitor reacts to another's price and output decisions?

© BrainMass Inc. brainmass.com October 24, 2018, 9:43 pm ad1c9bdddf

Solution Preview

Answer 1: As the firm moves from monopoly to pure competition, one strategy that could help the firm to prolong its profitability is DIFFERENTIATION. As more and more companies enter the market, the market structure goes towards perfect competition. But perfect competition only exists if the product is homogeneous across all suppliers. Thus one way to preserve profits is to differentiate one's product with respect ...

Solution Summary

The solution does a great job of answering the questions below.

See Also This Related BrainMass Solution

I need some help finding info about LG company globalization

Discuss the firm's activities outside the U.S.

Identify which economic concepts, such as comparative advantage, apply to your firm.

Explain how these economic concepts can be used to address the firm's problems and opportunities?

Identify which economic and political policies affect your firm and explain how they impact business decisions.

How does your firm use technology to strategic advantage?

Discuss the impact of globalization on the firm's cost structure, markets, currency risks, and overall strategy. Be sure to provide a definition of globalization in your answer.

View Full Posting Details