Answer to Question #318836 in Microeconomics for samson

Question

3. There are various market structures, under which each firm in an economy follows, these market structures range from perfect competition to monopoly. 

a) How do characteristics of a monopoly differ from those of a perfect competition? 

b) .Your company operates in an oligopoly market. You have been told that non price competition strategies can help you increase your sales in the short run. Would you propose and explain any 3 non price competition campaigns that you would employ for this call?

4. Research the job search theory and its applicability to daily business life

Answer 1

3)(a)

i) In a monopolistic market, there is only one firm that dictates the price and supply levels of goods and services while a perfectly competitive market is composed of many firms, where no one firm has market control.

ii) Monopolists are price makers while perfect competition markets are price takers.

b)

i) Product differentiation

ii) Promotional expenditures (such as advertising, selling staff, the locations convenience, sales promotions, coupons, special orders, or free gifts),

iii) Marketing research

iv) new product development,

v) Brand management costs

c) Search theory explains how buyers and sellers decide when to accept a matching offer for a transaction.

Search theory extends economic analysis beyond the idealized world of perfectly competitive markets.

Search theory helps explain why frictional unemployment occurs as workers search for jobs and businesses search for new employees.