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Thus non-price competition prevails in the market and it is up to a particular firm to convince consumers that its product is superior. Only then can it charge a higher price vis-à-vis rivals. Given a large number of sellers, collusion is practically impossible
In the event of an increase in demand, leading to an increase in price, the firms in the industry may earn higher profits in the short run. However, over time, the existing firms in the market will increase their production capacity or new firms will enter the industry to take advantage of the higher price. Either way, the supply demand mismatch would vanish and the firms will earn normal profit only.
The assumption of symmetry in monopolistic competition, which states that when a new firm enters the industry it draws customers equally from all firms, will lead to negligible change in the CR of the industry.
The aforesaid discussion suggests that if J’s Assistant Living is to start operations, the company will have to offer a differentiated product. The company will not be able to compete on the price plank and will earn normal profits in the long run. In case J’s Assistant Living does not succeed, it will be able to exit the industry easily.
The Concentration Ratio (CR) of 80 percent in industry B with 20 firms signifies that there is ‘high concentration’ in the industry. The industry is oligopoly as the few largest firms account for 80 percent of the market share.
In an oligopoly, the market dominated by a relatively small number of large firms. These firms have considerable market power and may either sell standardized products or differentiated products. Each firm realizes that any move that it makes would be taken note of by competitors. As such, the decisions that a firm takes is strategic in nature as it invariably elicits a response from the rivals. The main characteristics of this industry type include barriers to entry and
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(“Companies Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
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(Companies Essay Example | Topics and Well Written Essays - 500 Words)
“Companies Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/macro-microeconomics/1579466-companies.
Multi, in this context, may mean more than one and national may mean countries or nations.There are a number of famous companies which we deal with. These companies are famous around the world rather than just operating in their host countries.
and Wall-Mart Stores Inc. have performed in the last year. Current ratios have been low for Kroger and Wall-Mart, with 0.87 and 0.9 however; Chevron and Eaton have adequate current assets to pay off immediate obligations. Wall-Mart is the lowest ranked in terms of current ratio within the industry.
It is suspected that the oil industry is taking advantage of its monopoly based on huge market control and lax energy trading oversight to gouge the public, squandering the opportunity to invest in cleaner, sustainable sources and curb the nation's dangerous addiction to oil.
The objective of the Companies Act 2006 in general is to implement a lighter regulation on businesses and encourage long-term investment in the United Kingdom (Thomas, 2007). A review of the old company law by Benjamin Hopps of Sykes Anderson law firm found that the law is an over-regulation and has been too complex especially to small companies (Thomas, 2007).
This is an indication that the pace of internet commerce is growing rapidly but this time without the extreme speculations that caused the crash in 2000 (De Kare-Silver, 2000).
Businesses are challenged not only to excel in their trade but now must be able to bring that trade to fresh waters and beyond their comfort zones (Perner, 2004).
Mergers and acquisitions have had an important impact on the business environment for over 100 years. The first merger wave lasted from 1897 to 1904 with the main motive of monopoly. The second merger wave came in 1916 soon after the First World War. It was a merger for oligopoly.
Every company incorporated by registration under the Companies Act must have a Memorandum and by virtue of Section 1 (1) of the Companies Act 1985 the memorandum must be subscribed by the persons who have the intention to form the organization. These persons are known as 'Subscribers to the Memorandum'.
Kangaroo Media Inc. incorporated in 2000 with is headquartered in Mirabel, Canada is involved in the manufacture, commercialization, sale and rental of portable wireless audiovisual multifunction entertainment systems. The company operates through its subsidiaries in Canada and the United States.
The problem in this case is a drop in quality that has occurred because of overloaded engineering staff. (Maynard and Fackler, 2006). The Company expanded into the United States but retained most of its development in Japan and during
The author of the paper states that both the companies place high value in their people. A company is its people. This shows the significance which the Korean based company attaches with its people. Similarly, according to, GE’s people are its greatest asset. This highlights the worth of employees in GE.
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