Answer to Question #246367 in Microeconomics for vende

Question

Syarikat Berjaya Emas is a single company in the industry that produces products for which there are no close substitutes. The company maintain its current position of dominance in the market by forming different barriers of entry to prevent new competitors from entering the industry. Besides, the company also use a price discrimination strategy to charge different buyers at different prices for the same product even though the cost is the same.

Assume that you are the decision maker of Syarikat Berjaya Emas. Apply your knowledge in market structure to discuss FOUR major attributes of the market structure which Syarikat Berjaya Emas operates. Relevant examples and explanation for each attribute provided are required to support your answers.

Answer 1

1: Profit maximize. The firm is charging different prices thereby maximizing it's profit.

2: Price maker. The firm is deciding on the price to charge.

3 : High barriers to entry. The market is being operated by a single seller.

4: price discrimination. The firm is charging different prices to its customers.