We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

The potato chip industry - Essay Example

Comments (0)
Summary
WONK POTATO CHIP COMPANY Instructor: Abstract In an environment involving a monopolistic competition, there normally exists an atmosphere that suits both the consumer and the business. The consumer is able to enjoy a range of options when shopping while avoiding exploitation from the producers of those products…
Download full paper
GRAB THE BEST PAPER
The potato chip industry
Read TextPreview

Extract of sample
The potato chip industry

Download file to see previous pages... The change in the market structure of the potato chip industry will have a few effects upon the stakeholders. A monopoly market structure tends to risk the freedom of the consumer, but businesses can enjoy the advantages of a pure monopoly while at the same time protecting the consumer from subsequent exploitation characteristic of a monopoly. Characteristics of a Competitive Monopoly A monopoly competition is characterized by a number of distinct values. Normally, there exists a number of small businesses that produce identical goods but with minimal differences. These small firms end up having competition for their products in the market. Some of the hurdles that entrants of a business line or an industry experience include barriers involving government policies, creation of demand for products, research and development costs, and start-up and so on. However, in the case of a competitive monopoly, the firms involved do not have experience these (Ackerman, Goodwin & Weissskopf, 2009). Due to the demand created for their products. More often than not, demand exceeds supply for the product in question and therefore the business try to compete for a larger share of available demand. In relation to this, the potato chip industry had a monopolistic competition for their products before the lawyers came and took over the industry. The market structure for the potato chip industry experienced minimal price control due to the reason that it was a competitive monopoly. Effects of Pure Monopoly to the Stakeholders Every business has a number of stakeholders, who may have interest in the company due to one or more reasons. The stakeholders of any company include, but are not limited to consumers, suppliers, government, creditors and owners/shareholders. A pure monopoly market affects the stakeholders in different ways depending on the benefits that they attain from their relationship with the company (Hall & Liberman, 2001). When the two lawyers bought up the entire industry, they wanted to be able to exercise pure monopoly in the potato chips industry in Northwest region. Particularly being the sole owners of the entire industry in the region, the partners are able to enjoy price control to the detriment of the consumers of this product. This way they can maximize their profits. The consumers of the potatoes in the Northwest region will have several major adverse effects from the monopolistic practices of Wonk Company. Firstly, the prices of the potato chips will shoot up meaning that the consumers will spend more for the same products that were once affordable. For the reason that Wonk Company does not experience competition, it is possible that the products will decline in quality and as a consequence the consumers will suffer the effect. The suppliers from whom the potato chip businesses bought their products will also experience a hit. Wonk Company will attempt to practice price control of the products that they acquire from their suppliers. As a result, many of the suppliers such as farmers will have to look for alternative markets for their potatoes. Otherwise, Wonk will buy the products at low prices and farmers will suffer the effects of the monopolistic market. Impacts of Monopoly on Prices, Output and Efficiency Davies puts forward the fact that ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Microeconomics
In 2008, two smart lawyers quietly bought up all the firms and began operations as a monopoly called “Wonks.” To operate efficiently, Wonks hired a management consulting firm, which estimated a different long-run competitive equilibrium. The new company is now a “monopoly” which is only the sole provider of potato chip in the entire country.
6 Pages(1500 words)Essay
Monopolistic Competition versus Monopoly
The group of companies prior to the merger was individual competitors in a market dealing with the same products. However, after being bought by two lawyers, the environment is bound to change as the competitive market changes in structure. The preceding scenario is an example of an imperfect competitive market referred to as monopolistic competition.
6 Pages(1500 words)Essay
Macro and Micro Economics Essay
It also analyzes the price and output changes that will arise as a result of transition from monopolistic competition to a monopoly. This paper also proposes the best market structure to be taken by Wonks in the potato chip industry so as to benefit all the stakeholders.
5 Pages(1250 words)Essay
The Potato Chip Industry
eller in the market is known as the monopolist who is known to be the price maker enjoying complete control over the process of supplying commodities to the market (Armentano, 1978). The case which is being concentrated in this research paper is of the potato chips company
6 Pages(1500 words)Term Paper
Monopoly Market and Monopolistic Competitive Market
The research delves into monopolistic competitive market. The mere mention of monopolistic competitive shows that there are many small competitors in the same market. The competitors sell different products that can fill the same need. For example, the grocery store sells different brands of cheese.
6 Pages(1500 words)Essay
Potato Chip Industry
The perfect economy offers choices that are price-influenced. Question 1. The monopoly market structure is defined as a business environment where the industry and the sole entity are one and the same. In the 2008 Northwest’s monopoly style potato chip industry, there is no substitute for the lone Wongs potato chip products sold in the potato chip market segment.
5 Pages(1250 words)Essay
The Irish Potato Famine
The Irish Potato Famine is one of such tragic episodes in our history. Nevertheless, this infamous famine is a given fact of history of Ireland and Great Britain, so it is no wonder that it has been carefully studied by historians, and that some quite different opinions have emerged as to what degree this famine was initiated by natural causes and to what extent the famine was a disaster waiting to happen.
6 Pages(1500 words)Essay
Managing organizations and people
On the contrary, a corporate body is born into the market place where there is no room for such loving sentiments. A new entrant is treated as a
10 Pages(2500 words)Essay
Potato
After a few minutes, when the potato had boiled a bit, I took it out of the pan and started peeling off the skin. This exposed the yellow part of the potato. Once this was done, I set it down for a few
1 Pages(250 words)Essay
Let us find you another Essay on topic The potato chip industry for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us