Nobody downloaded yet

Competition - Term Paper Example

Comments (0) Cite this document
Summary
It also provides an overview on how the firms will determine its price and output in order to maximise the profits.
Market generally means a place or a geographical area, where buyers with…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.9% of users find it useful
Competition
Read TextPreview

Extract of sample "Competition"

Download file to see previous pages The market price in a perfect competition is determined by the market forces namely, the demand and supply of the products. The features of perfect competition are as follows,
There are a large number of buyers and sellers in a perfect competitive market that neither a single buyer nor a single seller can influence the price. The price is determined by the market forces namely the demand for the supply of the products. Thus the sellers in the perfectly competitive market are price takers and quantity adjusters.
The products produced by all the firms in a perfectly competitive market must be homogenous and identical in all respects i.e. the products in the market are same in quantity, size, taste etc. The products of different firms are perfect substitutes and the cross elasticity is infinite.
Both the buyers and the sellers are fully aware of he current price in the market. Therefore the buyer will not offer higher price and the sellers will not accept a price less than the one which is prevailing in the market.
There must be complete freedom for the entry of new firms or the exit of the existing firms from the industry. In times of profits, new firms will enter into the markets and in time of loss the existing firms will leave the industry.
In a perfect competition it is assumed that there are no transportation costs. Because in perfect competition, a commodity is sold at same price throughout the market. So if transportation costs are incurred firms closer to the market will charge a lesser price than the firms far away. So, it is assumed that there are no transportation costs.
Under perfect competition price is determined by the market forces namely the demand for and supply of the commodities. Hence there is uniform price in the market. As a result the average revenue is perfectly elastic. The AR curve is horizontally parallel to x-axis. Since the average revenue is ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Competition Term Paper Example | Topics and Well Written Essays - 1500 words”, n.d.)
Competition Term Paper Example | Topics and Well Written Essays - 1500 words. Retrieved from https://studentshare.org/miscellaneous/1558697-competition
(Competition Term Paper Example | Topics and Well Written Essays - 1500 Words)
Competition Term Paper Example | Topics and Well Written Essays - 1500 Words. https://studentshare.org/miscellaneous/1558697-competition.
“Competition Term Paper Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.org/miscellaneous/1558697-competition.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Competition

Monopoly, Oligopoly, Monopolistic competition, or Perfect competition

...?An oligopoly is defined as a market situation where the total output is concentrated in the hands of a few firms (Bamford 170). There is interdependency among producers in an oligopoly because each producer must take into account the reactions of other producers following a price cut. Rival firms in an oligopoly match each other’s price cuts but do not match each other’s price increases. Competition in an oligopoly primarily takes the form of advertising and product differentiation. There are a lot of barriers to entry in an oligopoly like economies of scale, product differentiation and brand loyalty, mergers and takeovers etc (Slomon 174). These barriers discourage new entrants in the oil industry as the existing firms...
3 Pages(750 words)Essay

Competition

...?Running Head: COMPETITION Industrial regulation The term industrial regulation means the intervention of the government to control what happens in a certain industry, like the regulation of the entrance and exit to that market. This control may be the control of the competition and also the pricing issues. Mostly, the government does this regulation through the regulatory agencies and put in place laws that will centrally plan an economy or reduce the possibilities of market failure. The regulations are put in place to help reduce the conflicts in the commercial; procedures like those of maximizing profits. The entities may require raising the profits and the only way they find to do this is to raise the...
3 Pages(750 words)Essay

Competition

...TOPIC: Competition is generally regarded a good thing for any economy. Agencies like the Competition Commission are working hard to ensure competition within UK. Yet we see that global competition has forced many British manufacturing firms to shift their production to China causing unemployment at home. If this is the case, would you still give your stamp of approval on competition INTRODUCTION Competition is what keeps the market move at such a volatile pace. There will always be a winner and a loser in a competitive environment. There are many agencies, however, like the Competition Commission of...
5 Pages(1250 words)Essay

Competition and Competition Policy

...Introduction: Competition is considered to be an integral part of a capitalistic or free market society. This freedom to do business (within the limits of certain statutes) provided an impetuous for growth of the economy. It provided jobs, brought in revenue for governments apart from bringing prosperity and wealth to the owners of businesses. The collapse of Communism and change of policies by countries like China apparently showed that a competitive market is the catalyst for growth. During the time when Adam Smith was writing his famous treatise, the situation was quite different. Competition did exist in the marketplace even during that period. But there were heavy restrictions on the...
18 Pages(4500 words)Essay

Pure Competition & Monopolistic Competition

...Pure Competition & Monopolistic Competition: Analysis and Comparison 1. Introduction The concepts of pure and monopolistic competition in microeconomics act as a benchmark for various contemporary researches. A careful analysis would reveal that both pure competition and monopolistic competition bear various similarities and differences, having their own set of merits and demerits. However the prevailing differences between both systems indicate that monopolistic competition has a more realistic implication and inherent practicality in the marketplace. 2. Pure Competition Pure competition is one of...
7 Pages(1750 words)Research Paper

Airline Competition

...What can airlines do to stand out in the oligopolistic airline industry? As with any business venture, an airline can have many competitors. In thisindustry, competitors may take the form of small-scale airlines which may only fly to a few destinations also that are also part of a bigger airline’s route albeit for much cheaper prices. Rivals may also be in the form of airlines that operate on the same big scale. Strategy is a very important ingredient if an airline company wants to be the leader in this kind of industry. (Oligopoly) Strategy means making a choice if one will compete or join the competitor. For example, a search on Priceline.com for flights from Atlanta, Georgia to New York City showed a difference in prices... can airlines...
1 Pages(250 words)Essay

Competition

...Flank Attack Strategy Flank Attack Strategy The business environment is dynamic and keeps changing from time to time based on vulnerability to a number of threats and challenges. There has been augmented competition among key business players and the question to marketing management teams lies, in appropriate mechanisms, to employ in order to survive against existing and emerging rivalry. In business, competition grows more forceful and severe in every year, ranging from competitors that venture globally to capture newer markets, online contestants looking for low-cost methods to establish their distribution channels together with efforts by category leaders in exploiting newer categories. Market leaders...
2 Pages(500 words)Essay

Competition

...and consumers’ preferences, Gap 360 aims at repositioning the brand with the help of current marketing plan and strategy. It is perceived that by implementing the marketing campaign, Gap 360 would be able to transform itself from a low-mid level gap year travelling business to a mid-high level gap year travelling brand. The competition of the business stems from other travelling and tour operators. The pricing strategy of Gap 360 at the moment is a cost plus pricing strategy, which is considered as a medium/high pricing of the services. An average gap year traveling package offered by Gap 360 ranges between £3,500 and £5,000 whereas an average travelling and tour package offered by other tour operators in England costs...
25 Pages(6250 words)Assignment

COMPETITION

...Competition Weigelt A, J Schumacher, T Walther, M Bartelheimer, T Steinlein and W Beyschlag. 2007. Identifying mechanismsof competition in multi-species communities. Journal of Ecology 95: 53–64. The experiment entails comprehending the outcome of the competition in the construction and development of plant communities. This includes a study of plant competition in order to evaluate varying functional aspects of competitive interactions. This method is used to examine the effects of different resource accessibility. The results of the experiment establish the evidence that interactions in mixed plant communities are not a totality of their component...
1 Pages(250 words)Assignment

Competition

...Competition There has been a heated debate concerning the value of competition among children. Some researchers opine that children should not be taught or exposed to competition. The researchers assert that competition can have negative effects on their lives. Therefore, many parents and teachers have focused on making children feel that they have won and that they all deserve recognition. However, there is evidence that competition is necessary for children. It can promote excellence and help children recognize the value of working hard as this paper will highlight. Competition can serve as a driving force that motivates children to...
1 Pages(250 words)Essay
sponsored ads
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.

Let us find you another Term Paper on topic Competition for FREE!

Contact Us