Why would firms advertise? Give some examples of a market structure where firms need to advertise to gain a fair advantage over their rivals and also identify the type of market structure? Give typing answer with explanation and conclusion
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3) Why would firms advertise? Give some examples of a market structure where firms need to advertise to gain a fair advantage over their rivals and also identify the type of market structure?
Give typing answer with explanation and conclusion
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- The sum total set of interrelationships that establish the manner in which competitors behave in an industry could be referred to as competitive dynamics.Required: 1. Briefly explain what competitive rivalry is? 2. Explain what competitive behaviour is and the three factors that drive competitive behaviour 3. With the aid of a diagram explain the model of competitive rivalry and how a strategist can use that understanding to develop strategies that facilitate the attainment of higher financial performance7) How do Monopolistic Competition and Perfect Competition differ in terms of efficient use of resources, in the long run?25. When monopolistically competitive firms advertise they hope to _________ and __________. When monopolistically competitive firms advertise they hope to _________ and __________. decrease market share; increase average total cost increase market share; increase average total cost increase market share; decrease average total cost decrease market share; decrease average total cost
- Only typed answer 1. Why do oligopolies exist? A. A small number of firms have established barriers to entry using economies of scale, patents, and sheer size to prevent other firms from challenging them. B. The oligopolistic firms are created, run, and supported by the government. C. The members of an oligopolistic market are producing in the upward sloping range of their long run average cost curves.In the long run, which of the following market has the following equilibrium condition: (1) everyone is making zero economic profit; (2) market price = ATC monopolistic competition monopoly O perfect competition oligopoly « Previous Nex No new data to save. Last checked at 11:47am Submit 000 80 DD esc F1 F2 F3 F4 F5 F6 F7 F8 F9Firms J and K produce compact-disc players and compete againstone another. Each firm can develop either an economy player (E)or a deluxe player (D). According to the best available marketresearch, the firms’ resulting profits are given by the accompanyingpayoff table.a. The firms make their decision independently, and each is seeking itsown maximum profit. Is it possible to make a confident predictionconcerning their actions and the outcome? Explain.Firm KE DE 30, 55 50, 60 Firm JD 40, 75 25, 50b. Suppose that firm J has a lead in development and so can move first.What action should J take, and what will be K’s response?c. What will be the outcome if firm K can move first?
- Explain and discuss game theory approach of modeling competition: a) What is the difference between the equilibrium in dominant strategies and Nash equilibrium? Show one game example in tabular (simple) form and the other in decision tree (extended) form to support your answer. b) In what circumstances players choose to follow maximin strategy? Support your answer with specific examples please.56.Assume that an oligopoly's four enterprises are forming a pact to cooperate. How might the ease of entry into their industry influence how much they charge?(a) There are two companies in the world that produce large passenger aircraft, Boeing, and Airbus. How would you characterize the market for large passenger aircraft, monopoly, perfectly competitive, monopolistically competitive or Oligopoly? Please explain. Large passenger aircraft are defined as aircraft than can carry more than 150 passengers. (b) The market for telephone services has become more competitive over time with the advancement of technology in the industry. Technology in the aircraft manufacturing industry has also advanced significantly. Why hasn’t this improvement in technology led to an increase in competition (Boeing and Airbus have been the only manufacturers in this industry for many years)? Please explain.
- 4. Explain why firms in perfect competitive markets have no incentive to advertise for their products and firms in monopolistic competitive markets have an incentive to advertise for their products.Explain the market structure that a service oil company thst leases vessels and jack up barges to IOC and producing oil companys can perfectly fit into with servaral competitors (E.g is this company a monopoly, a monopolist competitive firm, an oligopoly, or a pure competitive market player? 2. What pricing strategy/strategies can this oil servicing company adopt to stay afloat in the nigerian market?6. Suppose that the market for e-readers is an oligopoly controlled by Amazon, Barnes &Noble, Sony, and Apple. Barnes & Noble is considering increasing its output. How would this affect the market price? How would it affect the profits of each company?
