Purchase Solution

Market Structures

Not what you're looking for?

Ask Custom Question

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?

Purchase this Solution
Solution Summary

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

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 ...

Purchase this Solution
Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

View More Free Quizzes
Related BrainMass Solutions

  • Characteristics of the Various Market Structures

    530229 Characteristics of the Various Market Structures The market structures influence how price and output decisions are made by the firms in their respective structure.

  • Differentiating Between Market Structures Simulation

    253117 Differentiating Between Market Structures Simulation Differentiating Between Market Structures Simulation https://ecampus.phoenix.edu/secure/aapd/vendors/tata/UBAMsims/economics2/market_structures/economics2_market_structures_frame.html Using

  • venture capital

    However, potential competitors and structures of the market into which the new firm enters are extremely important in realization of profits.

  • Differentiating between Market Structures Simulation

    The Differentiating between Market Structures simulation. Based on the simulation, prepare a table that compares and contrasts the various characteristics of the four market structures. Format the table as follows: a.

  • relative differences in the number of consumers and producer

    What are the relative differences in the number of consumers and producers in the four main market structures, i.e. monopoly, oligopoly, a perfectly competitive market and a monopolistic competitive market? 2.

  • Market Structures and the Behavior

    186026 Market Structures Prepare a table that compares and contrasts the various elements of the four market structures.

  • Monopolies, Monopolistic Competitions, and Oligopolies

    Another difference between these market structures is the number of firms operating and competing within the market.

  • Optimal pricing strategy

    325120 Optimal pricing strategy varies significantly across different market structures. The pricing guidelines in a monopoly market are relatively straightforward.

  • Market Structures questions

    Market Structures questions are presented.

  • Sales Force Structures

    Such structures can be slower to react to market changes, have greater opportunities for miscommunication. source: http://www.devicelink.com/mx/archive/02/03/masloski.html Which of the four basic sales force structures should he use? Why?

View More Related Solutions