Give an example of an industry with an oligopolistic structure. What are the main products/services offered by this industry? What are the main firms in the industry? To what extent are the products/services from this industry homogeneous? What is the level of concentration in the industry? How would you characterize the barriers to entry in the industry?
Airplane industry of India can be considered as an oligopoly industry. The main service of the airline is air travel where the main firms are Indigo, Spice Jet, Jet Airways etc. To a great extent the services are homogeneous as the final service is just the travel seat and the level of concentration is moderately concentrated according to HHI index where spice Jet and Indigo are main players. I would characterize the barriers to entry in such a way so as to ensure this is an oligopolistic industry where the costs of entry is indeed quite high as it requires acquisition of airplanes and permissions which indeed cost you hefty and difficult to get as well on the whole.
Give an example of an industry with an oligopolistic structure. What are the main products/services offered...
Define the industry related to the product or service produced by the company you selected for your microeconomic/macroeconomic analysis papers. The company I chose is Procter & Gamble and the product I decided to focus on is the Gillette brand. Consider the following questions: What are the main companies in the industry? What is the level of market concentration in the industry? To what extent are the products/services from this industry homogenous? How would you characterize the barriers to entry...
A concentration ratio is intended to measure How much of an industry is concentrated in central Canada How much of a given industry is concentrated in the hands of foreign-owned transnational corporations The number of firms in an industry How much production in a given market is controlled by a few firms The proportion of an industry that concentrates on export market Economic profits can exist in an oligopolistic industry in the long-run because of Natural barriers to entry Economies...
1.Consider an industry with only two firms that produce identical products. Each of the firms only incurs a fixed cost of $1000 to produce and marginal cost is 20. The market demand function is as follows: Q=q1+q2=400-P a. Assuming that the firms form a cartel, calculate the profit-maximizing quantity of output, price and profits b. If the firms choose to behave as in the Cournot model, what would be the profit- maximizing quantities of output, price and profits? c. if...
Think about a firm that you may like buying products from. What industry does this firm belong to? For example, Apple would be in consumer electronics. What market structure would the firm you identified fall under? What are the names of other firms in this industry? Is it monopolistic competition, oligopoly, monopoly, or perfect competition? Justify your classification of the firm with your logic, and explained what impact this will have on their pricing power (or lack thereof) on their...
If you worked at a hotel industry.. What would you identify the market structure (perfect competition, monopoly, oligopoly, and monopolistic competition) the hotel industry and how does it reflects and report the market share by all firms within the market. In addition, what other recent changes in market concentration and profitability in the hotel industry. Provide a forecast of the hotel industry over the next five years based on information gained from your research project initiative.
When managers in oligopolistic firms make decisions that affect output or price, they must (1) A) also be sure they erect barriers to entry to prevent new entrants from affecting their plans. B) anticipate the reactions of their rivals and plan accordingly. C) register with the Antitrust Division of the Department of Justice. D) inform the regulators of their industry about their plans. If Ford Motor Company and General Motors Corporation were to merge, this would represent (1) a vertical...
Give an example of a market for a specific good or service in which firms face high barriers to entry. What are the barriers to entry that this market exhibits? Explain your answer with appropriate detail. You will be graded according to the following criteria: Providing a substantive response of not less than 75 words, demonstrating you have given serious thought to the post. Applying economic concepts when applicable. Meeting college level writing expectations (proper grammar, punctuation, stylistically sound, etc.).
Provide an example of a simultaneous game between 2 real companies in a specific oligopolistic industry. Identify the 2 companies and describe the industry, business strategy applied to the game, and possible payoffs from each strategic choice. What managerial insights can be derived by applying the concept of simultaneous game in your example?
Provide an example of a sequential game between 2 real companies in a specific oligopolistic industry. Identify the 2 companies and describe the industry, business strategy applied to the game, and possible payoffs from each strategic choice. What managerial insights can be derived by applying the concept of sequential game in your example?
Understanding possible entry barriers is most important when analyzing which of the industry forces? Threat of competitive rivalry Threat of suppliers Threat of new entrants Threat of buyers Threat of substitutes Which of the following is not a condition that makes suppliers of an industry more powerful? A) There are a high number of suppliers. B) The industry is not important to the supplier group. C) There are high switching costs for firms in the industry to switch from current...