Name: AMELIA BUSCHKE
Date: OCT 18, 2024
TYPES OF ECONOMIC COMPETITION
ALL-OUT COMP OR NO COMP AT ALL
THE TYPE PF COMP FOUND IN A MARKET AFFECTS CONSUMER & SUPPLIER DECISIONS ALIKE
BUSINESSES MUST DETERMINE THE TYPE OF COMP THEY FACE & THE AMOUNT OF CONTROL
THEY HAVE OVER THE PRICES THEY CAN CHARGE TO MAKE EFFECTIVE MARKETING DECISIONS
IF SUPPLIERS ARE IN A MARKET WITH MANY OTHER BUSINESSES OFFERING SIMILAR PRODUCTS,
THEY WILL HAVE DIFFICULTY RAISING THEIR PRICES
PURE COMP
A FEW MARKETS CONTAIN A LARGE NUMBER OF SUPPLIERS WITH VERY
SIMILAR PRODUCTS
IN PURE COMP MANY SUPPLIERS OFFER VERY SIMILAR PRODUCTS
EACH PRODUCER'S PRODUCTS ARE JUST LIKE EVERY OTHER PRODUCER'S
PRODUCTS
MONOPOLY
BETWEEN THE EXTREMES
A MONOPOLY IS A MARKET IN WHICH ONE SUPPLIER
IN OLIGOPOLY A FEW BUSINESSES OFFER VERY SIMILAR
OFFERS A UNIQUE PRODUCT
PRODUCTS OR SERVICES
THE CONSUMER EITHER PAYS THE PRICE SET BY
MONOPOLISTIC COMP, THERE ARE MANY FIRMS
THE BUSINESS OR GOES WITHOUT THE PRODUCT
COMPETING WITH PRODUCTS THAT ARE SOMEWHAT
GOVERNMENT AGENCIES REGULATE THE PRICES
DIFFERENT
THAT THE UTILITY COMPANIES CAN CHAHRGE
BETWEEN THE EXTREMES OF PURE COMP & MONOPOLY
THERE ARE 2 OTHER TYPES OF ECONOMIC COMP
OLIGOPOLIES
MONOPOLISTIC COMP
THE DEMAND CURVE FACING BUSINESSES IN AN OLIGOPOLY
IS DIFFICULT TO DESCRIBE
THIS IS BY FAR THE MOST COMMON TYPE OF ECONOMIC
ON A LOCAL LEVEL, SOME BUSINESSES OPERATE AS
COMPETITION MOST BUSINESSES FACE
OLIGOPOLIES BECAUSE THERE ARE ONLY A FEW
MOST OF THE PRODUCTS & SERVICES YOU BUY ARE IN
BUSINESSES OFFERING ALMOST IDENTICAL PRODUCTS &
MARKETS WITH MONOPOLISTIC COMP
SERVICES TO THE CONSUMERS IN THAT MARKET
WHEN YOU HAVE CHOICES YOU USUALLY SELECT THE ONE
DEPENDING ON THE INDUSTRY, GOVERNMENT AGENCIES
PROVIDING THE MOST STAISFACTION AT THE BEST VALUE
MAY ATTEMPT TO REGULATE TYPES OF ACTIVITY
UNDERSTAND THE COMP
IT'S IMPORTANT FOR BUSINESSPEOPLE & ESPECIALLY MARKETERS TO KNOW THE TYPE OF ECONOMIC COMP THEY FACE & TO ACT
ACCORDINGLY IN ORDER TO MAXIMIZE PROFITS
MARKETERS WILL WANT TO DO THINGS THAT RESULT IN PRODUCTS THAT ARE DIFFERENT FROM & BETTER THAN THOSE OF COMPETITORS
A BUSINESS IN PURE COMP WON'T BE ABLE TO EXERCISE MUCH CONTROL IN THE MARKET, WHILE ONE MONOPOLY WILL HAVE ALMOST
TOTAL CONTROL
3.3 ASSESSMENT
1.
THE NUMBER OF FIRMS COMPETING IN THE MARKET AND THE AMOUNT OF SIMILARITY OR DIFFERENCE BETWEEN THE PRODUCTS OF
COMPETING BUSINESSES
2.
PURE COMPETITION
3.
PURELY COMPETITIVE
4.
THE FEWER NUMBER OF COMPETITORS & THE GREATER THE DIFFERENCES AMONG THE COMPETITORS' PRODUCTS OR SERVICES, THE
GREATER CONTROL EACH FIRM WILL HAVE IN THE MARKET
