Which of the following is one way that a few firms can gain some control over their market?

June 28, 2020 Off By idswater

Which of the following is one way that a few firms can gain some control over their market?

Which of the following is one way that a few firms can gain some control over their market? secretly cooperate with one another bribe government officials to have prices set by law threaten to stop producing use advertising to increase demand.

When a few firms control the market is called?

An oligopoly (from Greek ὀλίγος, oligos “few” and πωλεῖν, polein “to sell”) is a market form wherein a market or industry is dominated by a small group of large sellers (oligopolists).

When a few firms dominate the market?

Market Structure Vocabulary

oligopoly market structure in which few large sellers dominate the industry
collusion formal agreement between firms to set prices or to behave in a cooperative manner
monopoloy a market structure with only one seller of a particular product

When a few firms dominate and control an industry?

Oligopoly is where a few firms dominate an industry. The industry may have quite a few firms or not very many, but the key thing is that a large proportion of the industry’s output is shared by just a small number or firms.

Which of the following is one way a government can grant a monopoly?

In some cases, the government will grant a person or firm exclusive rights to produce a good or service, enabling them to monopolize the market for this good or service. Intellectual property rights, including copyright and patents, are an important example of legal barriers that give rise to monopolies.

Which situation is the best example of an oligopoly?

Oligopoly is the type of market that has few number of firms but controls the market for a certain service or product. An example would be the auto industry – Chrysler, GMC, and Ford.

What are the 4 types of markets?

Such market structures refer to the level of competition in a market. Four types of market structures are perfect competition, monopolistic competition, oligopoly, and monopoly.

What are the four conditions of oligopoly?

Four characteristics of an oligopoly industry are:

  • Few sellers. There are just several sellers who control all or most of the sales in the industry.
  • Barriers to entry. It is difficult to enter an oligopoly industry and compete as a small start-up company.
  • Interdependence.
  • Prevalent advertising.

    What is a market structure in which a few large firms dominate a market?

    Oligopoly describes a market dominated by a few large, profitable firms.

    What are three sources of oligopolies?

    These are:

    • Large Investment of Capital: The number of firms in an industry may be small due to the large requirements of capital.
    • Control of Indispensable Resources:
    • Legal Restriction and Patents:
    • Economies of Scale:
    • Superior Entrepreneurs:
    • Mergers:
    • Difficulties of Entry into the Industry:

      Why do governments regulate natural monopolies 5 points?

      The government may wish to regulate monopolies to protect the interests of consumers. For example, monopolies have the market power to set prices higher than in competitive markets. The government can regulate monopolies through price capping, yardstick competition and preventing the growth of monopoly power.

      What are two legal barriers to entry created by the government?

      Legal Barriers. The government creates legal barriers through patents, copyrights, and granting exclusive rights to companies.

      What’s the easiest way to increase your profits?

      Increase pricing. Bar none this is the easiest answer for many small companies, especially those who have been in business for a while. Most businesses set their prices when their business was first launched, and since they were so hungry for business, they set pricing levels low.

      Which is the best tactic to increase profitability?

      Shift a cost from a fixed to a variable expense to give yourself greater flexibility. This is a way to protect your cash flow. It is extremely important for unproven tactics and strategies. For example, pay per sale versus a guaranteed amount for an outside sales person.

      What’s the best way to make more money?

      So cut your losers, and feed a portion of the saved time and money into your winners. This will greatly boost your profitability. Feed your winning sales people more leads (even if that means you starve your lower performing sales people of leads.)

      What does it mean to increase your profit by 5 percent?

      If you have a 15 percent operating profit margin, an .25-.5 percent increase to your dollars of profit is the equivalent to selling 1.67-3.33 percent more. What does this really mean?

      What are strategies do companies use to regain the market?

      The strategies may be successful, but they are not sure-fire by any means. By dropping prices, companies hope to lure customers away from competitors. The benefit is a higher market share, but it comes at a cost: lower margins per unit.

      How can a company increase its market share?

      How Can Companies Increase Market Share? Innovation is one method by which a company may increase market share. When a firm brings to market a new technology its competitors have yet to offer, consumers wishing to own the technology buy it from that company, even if they previously did business with a competitor.

      How to outperform your competitors in the market?

      Every competing company has weak points — places where your brand can outperform. Things like domestic customer service or extended guarantees on a product can go a long way if done right. Your job is to find these points and exploit them in your marketing and presentations.

      What to do when you lose market share to a competitor?

      When a company loses its market share to a competitor, there are a few ways that they can try and gain it back. These include lowering their prices, promoting their brand, and updating their product offering.