'Market Structure / Supply & Demand Essay\r'

'Monopoly †one soulfulness or company dominates prep of a grouchy crossing or dish, in the absence of competitors. Consumers do not have a choice for provision of the growth in question. A monopoly can buoy ‘ birdc only the shots’ on their crossway (price, availability etc.) as on that stain is no alternative on offer to consumers. Monopolists scat to produce a limited number of product which are then sold at a high price (there is no need to compete). (Control of demand) The British establishment seeks to restrict the behaviour of monopolies, so preventing unjust business behaviours.\r\nOligopoly †a small number of dominating firms or individuals compete to provide a product or service. Competition is limited and as a result, very closely related. Everything a competitor does outright affects your business. E.g. If one company drops its prices all the other businesses in the oligopoly are affected. Business decisions must always forecast compet itor’s cast / reaction. An oligopoly whitethorn make to maintain artificially high prices †technically hot except difficult to prove if nothing is in writing.\r\nDuopoly †taken literally a duopoly means 2 firms control a securities industry. In reality is normally means that 2 firms dominate a market by having the biggest share in it.\r\nEx antiophthalmic factorles of duopolistic markets include coca Cola and Pepsi as dominant suppliers of soft drinks. in that location are many competitors in the field but Coke and Pepsi have such a broad share of the market that they don’t usually see them as competition or influence on their business decisions.\r\nPerfect competition †a priori †as are all the above definitions. twofold providers offer a wide choice to a broad spectrum of consumers. Consumers benefit from freedom of choice and businesses competing for their routine through competitive pricing and customer service.\r\n re exhaust and Dem and\r\nThe concept of supply and demand is at the heart of a market economy. Prices, earnings, and the supply of inviolables is dictated by the demand for it by consumers.\r\nDemand †In economic terms this is the amount of a product (or service) desired by consumers.\r\n tag on †The quantity of a product or service a manufacturer is willing to make available to consumers and the price at which they want to sell that product.\r\nDemand thread †a graph showing the correlation (or demand family relationship) in the midst of the price of a product or service and how many consumers would desire it at different prices (if all other variables are unchanged). It is an attempt to quantify preference. I.e. how a trusty deal a consumer is willing to pay for something and at what load the cost outweighs the desire. Companies may use this demand relationship as a pricing guide and to dress how much(prenominal) of a product to manufacture, which in turn indicates the lev el of resources required. The simplest interpretation which can be move is that as prices face lift, demand drops and vice versa.\r\nAs we can see from the graphic above, at tailor A the highest price (P1) reflects the lowest quantity demanded (Q1). Conversely, at point C the number of units in demand (Q3) is much greater when the price (P3) is considerably lower.\r\nThe downward list of the curve reflects a negative relationship mingled with price and quantity demanded. I.e. as one actor rises, the other drops and vice-versa.\r\nVariables other than price affecting demand.\r\n demography †the statistical make up of consumers (age range, income bracket, education, political vista etc.) all influence the demand for goods and services.\r\nIncome †a rise in income often correlates with a rise in demand for a good. The exception to this is if a good is considered ‘inferior’ †a rise in income may result in a switch to goods considered to be of higher qu ality. (e.g. ‘plonk’ to fine wine)\r\nSubstitutes †Supply Curve\r\nThe basic premise from the supplier’s point of view is that the higher the price a good can be sold for †the more a business will be willing to supply.\r\nReferences\r\n ploted.co.uk. 2014. Biz/ed †Interactive Supply and Demand 1 | Biz/ed. [online] forthcoming at: http://www.bized.co.uk/learn/ economic science/markets/mechanism/interactive/part1.htm [Accessed: 8 Apr 2014].\r\nHeakal, R. 2014. Demand Curve. [image online] Available at: http://i.investopedia.com/inv/tutorials/site/economics/economics3.gif [Accessed: 8 Apr 2014].\r\nHeakal, R. 2014. Supply Curve. [image online] Available at: http://i.investopedia.com/inv/tutorials/site/economics/economics4.gif [Accessed: 8 Apr 2014]. â€â€â€â€â€-\r\nBBC News. 2014. Economy tracker: Inflation. [online] Available at: http://www.bbc.co.uk/news/10612209 [Accessed: 7 Apr 2014].\r\nHM Treasury, HM Revenue & Customs. 2013. Government incentives help 1,100 companies lift off. [press release] 7 November 2013.\r\nStaff, I. 2012. Economies Of Scale comment | Investopedia. [online] Available at: http://www.investopedia.com/terms/e/economiesofscale.asp [Accessed: 8 Apr 2014].\r\nhttp://www.etoro.com/blog/etoro-voice/19112013/8-things-investors-watching-google/?dl=30001303&utm_medium=Media&utm_source=46599&utm_content=6579&utm_serial=google3.aspx&utm_campaign=google3.aspx&utm_term=http://paid.outbrain.com/network/redir\r\n'