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Marketplace Structure - Research Paper Example

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This research paper describes a market structure and discusses where Manchester United fits. Then the paper will underscore monopsony market structure and its relevance in marketplace structure. Football which has grown to become a big industry can illustrate the accomplishment…
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Marketplace Structure
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Marketplace Structure

Download file to see previous pages... Contrary, a monopolistic market emerges after a firm produces a product that is not similar to what others produce. The product is unique and there is no replacement. The organization enjoys being the only single producer of the product or service. Consequently, the organization controls the price and quality. Entry in the monopolistic market is challenged by economies of scale. Monopolistic competitive market consists of organizations selling similar products that are not identical. There are many organizations each taking a portion of the market. Baade (33) adds that, the organizations diversify the products so that they have a variety according to name, style and pricing. Movement in and out of the industry does not have a barrier. Oligopoly is a market structure where a few organizations with same or diversified product gain prominence in the market. Because the few large organizations are known to each other, decisions are made putting into consideration the competitor’s reaction. Decisions on advertising, output and prices are influenced by the rival organizations. There is a tendency to diversify or standardize the product. Entering the industry requires a large capital. Economies of scale are the major hindrance to joining the industry.  Manchester United fits into the oligopoly market structure. It is a football club featured in the premier league among other prominent and wealthy football clubs. Its rivals in the market include; Arsenal, Liverpool, Leeds United and Manchester City. ...Download file to see next pagesRead More
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