Free Essay Competitive Advantage in Small Business

Different Market Structures

There ar 3 types of foodstuffs, unmatchable is Perfect disceptation, another is
Monopoly and lastly there is Oligopoly.

Perfect Competition

A comment of Perfect Competition is it exists when there argon so
many people in the food market, and other conditions are such, that noone
can influence the price, all other things being equal.

(BPP melodic line Organisations, Competition and Environment Chapter 4
knave 105)

Perfect competition is very rare and it is so competitive that any
man-to-man buyer or seller has only a lissome impact on the market
price. Products are all the said(prenominal) and information is perfect. The
merchandises or services sold are incisively the same, which is known as
homogeneous which are all the same price. Firms nominate only normal
net profit (the bare minimum profit necessary to keep them in business).
If firms started to earn more than that the absence of barriers to
entry means that other firms will enter the market and drive the price
level down until there are only normal profits to be made. Even the
engineering science used is the same throughout all the companies.

www.economist.com

www.oligopolywatch.com

Monopoly

A definition of Monopoly is it exists when there is only one supplier
of a product or service.





(BPP Business Organisations, Competition and Environment Chapter 4
Page 106)

Monopoly is a sole player and the Government defines a Monopoly as a
business with at least 25% of the market share. A single Monopoly
however is just one companion which has 100% of the market share. A
monopoly will produce less, at a higher price. It decides its price by
calculating the measurement of output at which its marginal revenue would
equal its marginal cost, and then sets whatever price would enable it
to sell only that quantity.

In practice, few monopolies are absolute, and their power to set
prices or limit supply is constrained by some real or potential...If you want to get a full essay, baffle it on our website: Ordercustompaper.com



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