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

Potato Chip Industry - Essay Example

Comments (0)
Potato Chip Industry and number July 20 2012 The industry players influence the market economy. The research delves into the potato chip’s monopoly industry. The research scrutinizes the monopolistically competitive, perfect competition and monopoly market economy…
Download full paper
Potato Chip Industry
Read TextPreview

Extract of sample
"Potato Chip Industry"

Download file to see previous pages Often, there are barriers to the entry of new competitors, specifically potato chip products. The barriers include government laws that ensure one entity’s sole status in the current market segment. Often, the government offers a franchise the entity the right to exclusively operate in a new market economy (Miller, 2012, p. 533). There are several advantages in the 2008 potato chip monopoly environment. Wongs, the exclusive manufacturer of Wong potato chip products in the Northwest, has no competitors. Since there are no competitors, the seller, including Wonks, can dictate the price of the products. Wonks can price its products at ten percent above cost. Wonks can also increase its current potato chip products’ prices by 20 percent. Wonks can raise its prices in order to allocate funds for research and development of new potato chip –related products. The company can sell strawberry-flavored potato chip products. The company can sell vanilla-coated products. Wongs can sell the potato chip products in different sizes to fit the customer’s budget. Virgile Chassagnon emphasized “From the 1930s to present day, the industrial landscape has changed considerably. The modern firm has evolved in parallel with the rise of the competition, globalization and financialization that began in the early 1980s (2011, p.35).”Likewise, the current and future customers are at the mercy of the monopolistic entities, like Wonks. The clients cannot search for competitors to sell the same quality product at lower prices. However, Mizan Rahmann (2011) proposed the government must promote perfect competition. Perfect competition has more benefits compared to the monopoly market environment. For the government to benefit from the monopoly, Doyle observed “When governments intervene in markets truly open, competitive free markets do not exist. There are many examples of how competition is limited by the entry of new firms being blocked or in some way made more difficult (Doyle, 2005, p. 199).” The government intervention can be the best alternative to prevent entry of prohibited competitors. The government can set a limit to the number of competitors in any local industry. In addition, Deanna Malatesta (2011) reiterated the government can institute laws that control the abuses. Malatesta observed the government counters the credible threats of opportunists, franchise violators, in the monopoly economy with more effective laws. Further, the Vatican’s Pontifical Council for Justice and Peace council’s call for the establishment of a “world political authority” that is vested with the power to control both global financial transactions and the world’s economic activities, especially controlling the outright abuses of the monopoly organization’s unreasonably high prices. The council’s call answered the United Kingdom Prime Minister Tony Blair’s assessment that the current disadvantageous turmoil of the current European Union economy threatened both the military preparedness of the allies and their capacity to share humanitarian help to the poor and neglected members of the global society (Justice & Economics, 2011). The government benefits from monitoring and controlling only one potato industry entity, Wonks, by spending less monitoring time and costs. However, some other businesses will not benefit from the ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
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
The potato chip industry
When the two lawyers bought up the entire potato industry, they were able to establish a favorable playing ground suitable for them to choose the best course of action. By hiring a management firm to guide in the best course of action, the owners are aiming at ensuring that the business maximizes its profits and that their concealed purchase of the potato industry does not affect the company negatively.
4 Pages(1000 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
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
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 Potato Chip Industry for FREE!
Contact us:
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