Friday, December 10, 2010

Tuesday, December 7, 2010


1 As a consumer you tend to benefit most from competitive markets
2 Perfect competitions, also called pure competition, is an ideal market structure.
3 In perfect competition, the many buyers and sellers must act independently
4 Under perfect competition, sellers offer identical products.
5 In a monopoly, one seller controls all production of a good or service.
6 If there are any barriers to entry in a market, sellers cannot compete easily and fully
7 Sellers in monopolistic competition try to differentiate, or point out differences, between their products and those of their competitors.
8 If sellers compete on factors other than price, they are engaging in non-price competition

Friday, December 3, 2010

5 Purchases

Gatorade- Monopolistic It is monopolistic because there are many other drinks like Gatorade that I can buy but nothing is exactly the same. It would be easy to start a new drink business. If no one buys Gatorade then the company gets hurt because the buyers have the power.

Carhartt Jacket- Monopolistic Competition because there are many other companies that make coats but none that is like a Carhartt. Anyone could start a coat company because they are easy to make and inexpensive. The buyer has the power because if no one buys it then the company gets hurt.

Reece Cooke- Reece is a Monopoly because he is the only one. There is no other Reece Cooke like Reece. Nobody can make another Reece because he is one of a kind. Reece has the power!

Quad Park- Quad parks are an oligopoly because there are very few. There is only a couple in each state and some states don’t have any. It is an oligopoly because none of them are exactly alike but they are similar. The buyer has the power because if people don’t come then the company will loose money and close down.

Gas Station- A gas station has perfect competition because there are so many. In 2002 there were 121,446 gas stations and in 2008 there was an estimated 115,223 gas stations. The owners of the gas stations and their manufacturers have the power because gas is a necessity for most people and they cant use anything else to make their car run.