With reference to the Bank of America: Compare and Contrast Public Goods, Private Goods, Common Resources, and Natural Monopolies Goods differ in whether they are rival or excludable. A rival good is a good whereby one person’s consumption reduces other persons’ consumption (Mankiw 2004)…
Download file to see previous pages...
These include things like the resources of the ocean (for example, fish) and the environment. Both of these resources can be impacted on by the way in which they are used thereby reducing the number of fishes or the quality of the environment. If a good is excludable but not rival it is a natural monopoly. Public goods like common resources are not excludable. They are available for the use of everyone free of charge. Common goods like private goods are rival goods because one person’s consumption reduces other persons’ consumption. Natural monopolies like private goods are excludable because persons’ can be prevented form consuming the good. According to Pashigian (1997) a natural monopoly exists when a given quantity can be produced by a single firm at the lowest cost. Bank of America is a financial institution offering financial services. Some of its financial services are non-excludable because anyone can access them. However, customers can be prevented from accessing loans if they do not qualify in terms of their ability to pay. The services that the bank provides are also non-rival because one person’s use of the service does not reduce other persons’ use of the service. It therefore means that Bank of America is not a natural monopoly because it is non excludable. Neither does the institution provide a private good because its services are non-rival.
...Download file to see next pagesRead More
Cite this document
(“Market structure Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Retrieved from https://studentshare.org/other/1425197-market-structure
(Market Structure Essay Example | Topics and Well Written Essays - 500 Words)
“Market Structure Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/other/1425197-market-structure.
These describe the main aspects of markets such as the products sold, the number of firms, and ease of entry and exit. The different market structures include: perfect competition, monopoly, monopolistic competition, and oligopoly. A perfectly competitive market is characterized by various features which in most cases are not found in a real world but are used as benchmarks for other markets.
The article is specifically about the Apple Inc- one of the leading consumer electronics companies in the world producing MP3 Players, tablet computers, desktops and other computers and consumer electronics goods. Though the strategy of the Apple has been discussed as the one which is based upon platform strategy however, the article focuses on how this industry or market works and who are the key players, how external events are affecting the firms and how prices are set up.
As it is shown in the essay, monopoly is a market structure where there is a single producer or seller of the product in the market with no substitutes available. The paper focuses on uncovering of the relative inefficiencies of the monopoly market, compared with other structures. This market produces less output with higher prices.
Arguably, there are varied market structures in every market and their characteristics in presenting quantity and imposing prices upon the units affect consumption patterns and the buyer and seller relationships. For example, perfect market competition, oligopoly, monopoly, and monopolistic competition vary broadly in terms of the market outcomes under the practices of the coinciding factors of demand and supply (Martin, 2012).
Under free trade environment the market itself fixes the price whereas in the Monopoly structure the monopolist being the only supplier fixes the price at which goods or services will be provided. In the monopolist market structure there are no close substitutes to the product or service the monopolist deals with and there are different barriers to enter the market.
However, PeopleSoft producers the specialized software programs for managing human resources while Oracle has a different specialization. So why would Oracle need this merge
As Ellison has noted, Oracle will continue supporting and improving PeopleSoft products if acquisition takes place.
Economics helps people to understand the politics and business aspects among others. At the same time, it also helps to understand the needs and demands and along with that it helps to choose the best allocation of the resources from various
To determine the major characteristics of Market Structure, economists have focused on the factors like nature of competition prevailing in the market & the mode of pricing. The system is greatly influenced
Market Structure is an imperial study in Micro economics that may be defined as a collection of interdependent factors which determine the level of interaction between buyers and sellers prevailing in the market and adjust price and output level according to the interrelationship between them. In particular, market structure demonstrates the number of firms producing identical and homogeneous goods and services
Beachbody LLC is a multinational corporation that was founded in the year 1998. The company uses multi-level marketing and infomercial to sell weight loss, fitness and muscle building home exercise DVDs. Among its trending home DVDs include the Tony Horton’s P9OX
4 Pages(1000 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Market structure for FREE!