How is being in a monopolistic competition influence the companies behavior?
370830
monopolistic competition describes a situation where a firm is not the sole producer, but can still leverage their position to effect changes in price and optimal output for the market.\n\nA simple example of monopolistic competition is an oligopoly, where no single firm controls the entire supply for the market, but each of the few dominant firms can affect a large part of the overall supply.  When this happens, firms will still tend to produce less than they would in a perfect competition but more than they would in a pure monopoly.  This mean that a monopolistic competition market will have lower prices and higher supply than a pure monopoly, but firm can still maintain long-term profits (capture some consumer surplus) as they will not supply as much as perfect competition.\n\nThis is also related to cartels...illegal here but there are a couple noteworthy examples globally.  Some good models for this may are the Cournot and Stackelberg models...
860069
Businessmen are people, too.\nOK, just took off my rose-colored glasses. Corporate profits can be adversely affected by backlash from consumers and/or government.
581075
From the choices, it looks like A.  Decrease.\n\nWith lower margins (see monopoly versus perfect competition), the profits slim down over time and there's less room for individual growth even with the total size of the industry increasing.
811354
There are some good academic articles out there in regards to the buying process. Some aspects of pscychology, perceived value determination, and evaluation of competitive product attributes relative to price. I think the general purchase process theories are pretty much out there (see link); newer research these days seem to focus on methods to quantify this and bring about a numbers science to understanding the purchasing process. \nBest of luck!
517576
a monopoly industry is where one company owns all the other companies so they can set prices as high as they want\n\nin a competitive industry all the different companies compete to get their products to be bought by consumers.\n\nwe as consumers prefer the second one for obvious reasons because then the prices will be lower.
252187
While pricing one must consider the cost elements first. Then depending on organization objectives and position with regards to market practice and competition prices are decided. \n\nIf pricing is used as competitive advantage then the only way to do this is mass production.\n\nWhen production increase cost decrease. \n\nThis what happened in china on the contrary taiwan decreased quality to decrease cost therefore lost customers and reputition.
357520
a) Can u afford to do the price cut - impact on ur profitability. (Eg: Existing company has $100million business,and can lose 10million on price-cut. New company loses nothing since starts from scratch).\nb) Will ur price cut expand the market? Else the overall industry profits come down.\nc) What new segments can u target with the new price? Will additional volumes justify the price cut.\nd) Does ur competitor have the ability to cut price further, after u decide to match his price.\ne) Do u just match or change the paradigm to value (Instead of same-for-less, u cud do more-for-same. Example: 20% extra quantity at same price, or more features at same price).
916445
If you compete only on price then you are on a downward spiral. If you get the contract at a low price then someone else will come along who will offer to do it cheaper yet. It is a losing strategy.\n\nWhy not explain that your workers have been trained to do a thorough job and are very careful with their client's property? If you compete on value you could get the job and still make a profit.
231499
Consumers demand for products that give convenience and quality at the lowest cost.  These are very subjective criteria, in a competitive market, suppliers are pressured to give better products to outsell the existing top brands.  Product awareness and reach is now not enough to sustain market supremacy specially because through the internet one can easily find the latest product offerings every now and then.  To compete, suppliers have to continually innovate either the product itself or to improve the process of making it and delivering it to the customer. \n\nIt's a tough market nowadays!
730968
Small businesses are having less capital, and similarly they cannot monopolize the market. Since their productions are lower they do not enjoy economies of scale. but there are some advantages, they are small so they can have direct relation with cosumers, they can identify consumer needs better than large businesses. They can use different promotions to compete with the large business, Most of the large businesses were a small business one day, example, HP was a garage at its early times.
100181
No, it does not. American business has been through this before. \n\nThe Great Atlantic & Pacific Tea Co., the grocery-store chain, stood astride the U.S. market in the 1920s and 1930s with a dominance that has likely never been duplicated. At its peak, A&P had five times the number of stores Wal-Mart has now (although much smaller ones), and at one point, it owned 80% of the supermarket business. Some of the antipredatory-pricing laws in use today were inspired by A&P's attempts to muscle its suppliers.\n\nThere is very little academic and statistical study of Wal-Mart's impact on the health of its suppliers and virtually nothing in the last decade, when Wal-Mart's size has increased by a factor of five. This while the retail industry has become much more concentrated. In large part, that's because it's nearly impossible to get meaningful data that would allow researchers to track the influence of Wal-Mart's business on companies over time. You'd need cooperation from the vendor companies or Wal-Mart or both--and neither Wal-Mart nor its suppliers are interested in sharing such intimate detail
481988
Not really.  The government has to regulate correctly.  If they don't put the price ceiling where it would be in perfect competition or at least lower than monopoly price, then it doesn't really do anything.  Even then, there might be some dead weight.  I don't remember fully.
376248
OLIGOPOLY: A market structure dominated by a small number of large firms, selling either identical or differentiated products, and significant barriers to entry into the industry. This is one of four basic market structures. The other three are perfect competition, monopoly, and monopolistic competition.\n\nOLIGOPOLY CHARACTERISTICS: The three most important characteristics of oligopoly are: (1) an industry dominated by a small number of large firms, (2) firms sell either identical or differentiated products, and (3) the industry has significant barriers to entry.
69917
Seems to me that you don't tell us very much about the corporation other then a bit about their revenues.\n\nWhat about their competitors? Their advertising? Marketing? Any subsidiaries?\n\nDo a bit more research in a database like Hoovers or D&B to get a better idea of where this company stands in relation to the market, its competitors, and what the consumers want.
485345
markets do mainly though some foreign countries/cartels such as Venezuela/OPEC have a lot of say. Economics still out as if price too high people use less. Supply & demand
460894
oligopoly\n\nfirst, you must have market shares to tell if an industry has an oligopoly market structure.\n\nan oligopoly market exhibits many sellers but is concentrated on only a few sellers. market shares matter because these few firms control majority of the entire market.
217220
Wow, if someone knows the real effect, it would start profiting from the idea. Later, it would be useless.\n Still, inter-market behavior is very productive and can give you some edge in trading. Commodities prices influence companies related to the commodity in question. Ex. oil.\nOption and future markets easily affect stock market trading. It is believed that future and option players are smarter, wealthier, and better informed that securities traders so a big trade in any of those market will influence stock trading rapidly. For example, if a big player wants to raid the market (make it go lower), they sell S&P futures, leading to program selling to start. If there is weakness in the market, a pretty good sell-off is guaranteed.