This website uses cookies to ensure you have the best experience. Learn more

Eco 204 Week 5 Essay

1792 words - 8 pages

Consultant to the Local Mayor
David D. Moore
ECO 204: Principles of Microeconomics BQC1334A
Greg Kropkowski
23 Sept 2013
Ashford University

Consultant to the Local Mayor
This paper is going to address the various market structures that will help the local mayor understand the structures of the many businesses in the city. In order to do this the following market structures will be addressed: perfect competition, monopolistic competition, oligopoly and monopoly. For each of these topic structures two market characteristics will be discussed. A real-life market structure within the local city will be identified with relation to the characteristics of that market. Next the paper will ...view middle of the document...

This would mean that there is market equilibrium. With average revenue greater than average cost the demand curve will remain elastic. Amacher (2011), states, “Monopolistic Competition describes an industry composed of a large number of sellers. Each of these sellers offers a differentiated product, which is a good or service that has real or imagined characteristics that are different from those of other goods or services”. This is to say that the same product is being offered although it is shown to be better or superior to the rival products. A great example of this would be gas stations. Although Texaco and Chevron are shown as having superior fuel due to the cleaning additives possessed within the fuel, Shell, Aragon, and even Costco offer fuels with the same amount of detergency at a lower price. The next market structure is an oligopoly. In an oligopoly there are only a few different firms that control 90% or so of the market. Airline industries are a great example of this. Some other examples of this would be cell phone companies as well as companies that may form a cartel like the oil industry. A monopoly consists of a firm that has the stronghold on a market. In this market there is no suitable substitute to the product being provided. Although one might think that a product could be sold at any rate desirable, this is not the case. Monopolies will actually find the rate that sells the most products at a desirable rate. This allows the monopoly to keep possible competitors out of the circle while making profit over the long-run. One example of this would be utility companies. Even though there are no substitutes for consumers, the government steps in and provides price regulation to ensure that rates remain affordable. It is in the best interest of the monopoly to remain reasonable, thus safe guarding the business. In Germany the company Deutsche Telekom became extremely greedy with their phone service. The government stepped in and divided the company into six subsidiary companies originally backed by the government. Deutsche Telekom lost their foot hold on the monopoly power that they possessed.
A real-life example of a local market structure in the city is the bakeries. Although there are three bakeries to choose from, they all hold similar prices and the products are substitutable across one another. This is an example of a monopolistic competition. The market can easily be moved in and out of and each firm is competing to sell the same product as if it is better or incomparable to the other.
High end barriers refer to the existence of high start-up costs or other obstacles that prevent new competitors from easily entering an industry or area of business. Barriers to entry benefit existing companies already operating in an industry because they protect an established company's revenues and profits from being whittled away by new competitors. (Investopedia, 2013) An example of this barrier would be a Credit Union. In order to...

Other Papers Like Eco 204 Week 5

Eco 372 Team Assignment Week 5

749 words - 3 pages University Of Phoenix Week 5 Team Assignment Jonathan A. Strother Sr. / Tonya Simmons Discuss withing your Learning Team how and why the U.S.’s deficit, surplus and debt have an effect on the following: * Tax payers * Future Social Security and Medicare users * Unemployed Indivuals * University of Phoenix Student * The United State’s Financial reputation on an international level * A domestic automotive manufacturing

HIS 204 Uop Tutorials / Uophelp

565 words - 3 pages HIS 204 Entire Course HIS 204 Week 1 DQ 1 HIS 204 Week 1 DQ 2 HIS 204 Week 1 Quiz HIS 204 Week 2 DQ 1 HIS 204 Week 2 DQ 2 HIS 204 Week 2 Quiz HIS 204 Week 3 Assignment Women Right, Sacrifices & Independence HIS 204 Week 3 DQ 1 HIS 204 Week 3 DQ 2 HIS 204 Week 4 DQ 1 HIS 204 Week 4 DQ 2 HIS 204 Week 4 Quiz HIS 204 Week 5 DQ 1 HIS 204 Week 5 DQ 2 HIS 204 Week 5 Final Paper Women Right’s, Sacrifices and Independence

Eco 372 Final Exam (Latest) - Assignment

1825 words - 8 pages decline in the level of aggregate demand.  A decline in aggregate supply. Download Complete Answers ECO 372 Week 5 Complete 27. U.S. imports involve an:  Inflow of foreign currency from foreigners to the U.S. economy  Inflow of dollars from foreigners to the United States economy  Outflow of foreign currency from the United States to foreigners  Outflow of dollars from the United States to foreigners 28. The law of demand

Eco 561 Final Exam

1884 words - 8 pages . includes environmental degradation caused by increased output production C. excludes value added from the underground economy, such as tips taken under the table D. excludes the value of the wages and benefits of government employee Click here to download ECO 561 Week 5 Complete 24) Other things equal, a decrease in the real interest rate will A. shift the investment demand curve to the right B. shift the investment demand curve to the

Economics

5568 words - 23 pages  “commercial division” to breakeven if PDS comprises of “commercial  and intercompany divisions” versus if PDS comprises of just a “commercial division”? Assume the two  scenarios have the same total fixed cost.   Answer  With two divisions we had:  Page 5 of 37    S. Ajaz Hussain, Dept. of Economics, University of Toronto  4.83   ECO 204, 2010-2011, Test 3 Solutions  This test is copyright material and may not be used for commercial purposes

Eco 561 Final Exam Latest University of Phoenix

1856 words - 8 pages monopoly power B. zero economic profit as it sets P = MC C. zero economic profit as its P = ATC D. a positive economic profit as it sets MC = MR About Author This article covers the topic for the University Of Phoenix ECO 561 Final Exam. The author is working in the field of education from last 5 years. This article covers the basic of ECO 561 Final Exam Assignment from UOP. Other topics in the class are as follows: ECO 561 Week 1 DQ 1

Eco-Friendly

1034 words - 5 pages antiodor. Bamboo fiber has anti odor properties. “Even if you wear organic socks for a week, it will not stink and have any harmful effect on skin” Chandni added. LITERATURE REVIEW * In recent years, there has been an influx of eco-friendly apparel by all types of Manufacturers. The apparel industry, like many other industries, is focusing on Sustainability and the use of green products as clothing components. The integration of these eco

ECO 204 Principles of Microeconomics

901 words - 4 pages ECO 204 PRINCIPLES OF MICROECONOMICS ASHFORD. 2 ASSIGNMENTS Raise or Lower Tuition? Russell O. Cross ECO 204 Principles of Microeconomics Instructor Shane Thompson January 5, 2015 ECO 204 PRINCIPLES OF MICROECONOMICS ASHFORD. 2 ASSIGNMENTS Raise or Lower Tuition Raise or Lower Tuition? Nobody State University (NSU) needs to raise revenue in order to survive. Their dilemma is whether to

Revenge in the Tale of Two Cities

622 words - 3 pages FYBA 8.30-9:30 9.30-10:30 Mon Practical Geo/Psy Tue Wed Sociology-B202 Thu Fri Sat Eng-B203 / Philo-B204 / Kon-B202 El.Maths-B202 Eco. Led-B 204 His.Fred- B203 Geo-B306/Psy-B205 History-B208 History-B208 Sociology-B202 10.30-11:30 Eco -B304/ Hindi -B202/ FrenchC203 / Marathi-B206 Eco -B304/ Hindi -B202/ FrenchC203 / Marathi-B206 Eng-B203/ Phi -B304/ Kon-B202 11.30-12:30 1:00-2:00 2:00-3:00 3:00-4:00

Butterflies

566 words - 3 pages Hypothesis The two- sample hypothesis testing... Save Paper TraInIng In Acc point around which a learning organization may develop. The training program contents in ACC aimed to change employees to make them adopt new ways of thinking and... Save Paper Eco/212 Week 5 Week 5 final paper Eco/212 Rex Hammond Dr. T o Define the purpose and function of money- the purpose of money is to sustain the balance and empower the elite... Save

ECO 365 Final Exam Latest Question Answer UOP Assignment

2207 words - 9 pages for a competitive firm’s product. Complete paper here ECO 365 Week 1 Knowledge Check 5). The best example of positive externality is: • Alcoholic beverages • Pollution • Education • Roller coaster rides 6). The theory that quantity supplied and price are positively related, other things constant, is referred to as the law of: • supply • profit maximization • opportunity cost • demand Click here

Related Essays

Eco 365 Week 5 Knowledge Check

831 words - 4 pages ECO 365 Week 5 Knowledge Check Questions to ECO 365 Week 5 Knowledge Check are as follow: 1. What problem do economists see with free trade areas such as NAFTA and the European Union? • They tend to lead to free trade rather than fair trade. • They can lead to regional trading blocs then restrict trade. • They lead to globalization. • They encourage countries to rely on others rather than being self-sufficient 2. A

Eco 561 Week 5 Lt Reflection

684 words - 3 pages Week 5 Learning Team C Reflection ECO/561 September 22, 2014 David Mozinski Week 5 Learning Team C Reflection This week’s material discussed more macroeconomics and the global economies. It ran the gamut from basic macroeconomic concepts all the way through understanding the causes and effects of financial crises. The objectives were to accurately project the effects of credit markets on the economy and global economic conditions

Eco 550 Week 5 Dq Essay

802 words - 4 pages Imagine you are a manager of a chemical company. An accident has occurred in which chemicals leaked into the ground water nearby, the community is unaware. Assess the costs involved in cleaning up the water immediately (confessing) versus hiding the fact and possibly paying more in the future. Discuss the impact on profitability in both situations. The costs incurred for an accidental chemical leak are going to associated with whatever agency

Eco 372 Week 5 Learning Team Assignment

1659 words - 7 pages ECO/372 Effects of the United States' Deficit, Surplus, and Debt The United States goes through a large amount of changes every day and there are certain things that affect all Americans. When the United States goes through deficit at times, surplus, and debit and when these things happen everything is affected. Students, business owners, and even car manufacturers are affected. These three types of budget issues happen to the United States