This website uses cookies to ensure you have the best experience. Learn more

Consider Singapore Retail Firms (Retailers) And Discuss If Oligopoly Or Monopolistic Competition Best Explains These Retailers’ Market Behaviour

612 words - 3 pages

Consider Singapore retail firms (retailers) and discuss if oligopoly or monopolistic competition best explains these retailers’ market behaviour.
Does oligopoly or monopolistic competition better explain the market behaviour of Singapore retail firms? First, a few definitions are in order.

First, retailers are firms that do not produce their goods that are sold, but only sell goods which are in turn manufactured by manufacturers or producers.

Second, oligopoly is characterised by many buyers but few sellers, each of the sellers interacting strategically against their rivals, which are the other firms competing in the oligopolistic industry, and there are high barriers to entry, ...view middle of the document...

On the other hand, there is no price stability in monopolistic competition because according to the economic model of monopolistic competition they operate using the profit maximising rule only to make their pricing decisions, where marginal cost equals to marginal revenue (MC=MR), which differs from firm to firm due to their changing marginal costs and marginal revenues.

Secondly, oligopolies tend to prefer non-price competition like advertising, freebies and lucky draws, whereas monopolistic competitive firms are more likely to compete based on prices (and output). Due to their large scale, with massive iEOS running down along their LRAC, oligopolies are able to use huge, large scale, media-based, newspapers and multimedia advertising, where for example supermarkets like Giant often advertise in newspapers. On special occasions, they also have products sold at lower prices or at special discounted, special occasion based prices. These oligopolies also have loyalty programmes, freebies, and even sometimes lucky draws with attractive prizes that make...

Other assignments on Consider Singapore Retail Firms (Retailers) And Discuss If Oligopoly Or Monopolistic Competition Best Explains These Retailers’ Market Behaviour

Four Market Structure Essay

1481 words - 6 pages the characteristics of Monopolistic Competition: 1. There are many sellers in the industry. 2. Firms compete by selling differentiated products that are highly substitutable for one another but not perfect substitutes. Products may differ in brand name, image making, advertising and so forth. 3. It is relatively easy for new firms to enter the market with their own brands and for existing firms to leave if their products become

Micro Economics Mcq Essay

2116 words - 9 pages D. Reduce both output and price  Answer: 7. Which of the following market structures would you expect to yield the greatest product variety?  A. Monopoly B. Monopolistic Competition C. Bertrand Oligopoly D. Perfect Competition Answer: 8. The primary difference between Monopolistic Competition and Perfect Competition is  A. The ease of entry and exit into the industry B. The number of firms in the market C. All of the statements

Anz Case

649 words - 3 pages firms often carry large amounts of debt. With high debt load utilities companies become sensitive to changes in the interest rate. The utilities sector perform best when interest rates are falling or remain low. Internal factors. Competition in the industry, competes with each other with low price. Electricity is homogeneous product, it is difficult for retailers to differentiate the product. External factors. Competition includes


3731 words - 15 pages fluorescent. Use recycled shopping bags with the highest post consumer recycled content you can find, and then find ways to gently discourage their use. Reuse packing and shipping materials and recycle, including cardboard. If you share a building or a shopping center with other retailers, encourage them to work cooperatively with you to do the same. Your chemical use is probably limited, but consider replacing those conventional cleaning products


1197 words - 5 pages watch a movie on demand is growing exponentially. Market Structure Due to fast increase in technology, Netflix is in an Oligopoly structure. One of the primary indicators that they are in this structure is that there are only four major firms in the video rental industry ("Economics Online", n.d.). The video rental industry can be determined to be controlled by Blockbuster, Comcast, Redbox, and finally Netflix. These companies are the only

Soft Drinks

2971 words - 12 pages , monopolistic competition, monopsony, oligopsony. * Monopoly- In this market structure there is only one firm in the product which determines the price and affects the demand and supply. Consumers have no choice but they have to purchase from only this firm. * Oligopoly- oligopoly is a market in which small group of firms control the market. * Monopolistic competition- A type of market where all firms produce similar yet not perfectly

Canadian Banking Oligopoly

1983 words - 8 pages down that the oligopoly can transform into a more inclusive market structure, such as perfect competition or monopolistic competition. Mergers Mergers have been a very important part of the face of the Canadian banking industry. As the banks have evolved and grown the need to expand has deepened for many banks. Over the years banks, along with other Canadian financial institutions have merged and been acquired, affecting the ranking of the


5309 words - 22 pages , convenience and service mean just as much to them as price. Evolving customer demands are driving retailers to tailor their offerings, expand into new business segments and enhance customer touch points. At the same time, competition— always fierce in retail—is intensifying. Only the fittest or luckiest retailers have survived the global downturn, and investors are demanding ever better performance from them. Already-lean retailers are searching for


2451 words - 10 pages placing the ads on TVs, Radios, billboards or other places they think are suitable. They should also consider other tools of the marketing mix like coming up with specific sales promotions and make sure to distribute them on all retail outlets to avoid any conflict within channels. They can also improve their personal selling to retailers and expand it to reach the ultimate consumers. Concerning the last promotional tool, direct marketing, it is

Future Of Shopping Malls

1538 words - 7 pages The current and future of Shopping Malls and Big Box Retail Stores Michele A. Guinn Northeastern State University Abstract Shopping malls and big box stores appear to be less plentiful than they were twenty years ago. Is this a result of e-commerce or a confluence of consolidation? Each of these issues affects consumers and the way we go about our daily shopping activates. We are a society that follows trends, and the mall trend may be

Economics: Micro And Macro Theory And Application

1247 words - 5 pages competition between the participants in that market. The competition is held in other areas (quality, advertising, additional services). The behaviour in an oligopoly can be explained using the game theory. There are big barriers to entry and exit. Oligopoly is a form of imperfect competition, characterized by the highest degree of monopolization. Oligopolistic firms have the ability to create new institutional forms, which allows for the improvement

Similar Documents

Oligopoly And Monopolistic Competition And Product Differentiation

660 words - 3 pages Unit 8 Assignment: Oligopoly and Monopolistic Competition and Product Differentiation Name: - Course Number: - Section Number: - Unit Number: - 8 Date: - Problem Dr. Fine and Dr. Feelgood are the only two medical doctors offering immediate walk-in medical services in the town of Springfield. That is, they operate in a duopoly. Each doctor can charge either a high price or a low price for a standard medical visit. The

Monopolistic Competition: Retail Industry Essay

663 words - 3 pages report, “Housing NYC: Rents, Markets and Trends,” across the city there are 87,358 New York households reporting income of more than $100,000 a year which pay below-market rent thanks to the city’s rent control and stabilization laws (Norcross, 2008).” In addition, over 35% of all the city’s apartments covered by the rent control regimes are rented by tenants who make more than $50,000 a year (Norcross, 2008). This results in people within a lower

Write An Essay Introducing The Person You Choose And Describing The Person's Best Qualities. Remember To Provide Enough Details About This Person So The Reader Can Picture Him Or Her In Their Mind

826 words - 4 pages yesterday, today, or tomorrow. Even when I make decisions that aren't exactly the brightest, my dad is understanding and helps me understand the pros and cons and what can happen if this or that is decided. My dad continuously tells me he loves me and that he will always be there for me, and it's the truth. All in all, my father is the person in my life that has stayed through it all. My dad is loving, kind, truthful, dependent, reliable and

Distinction Between Market And Market Structure And Its Implications For Managerial Decision Making

1002 words - 5 pages the point where price equals marginal cost of production, the net result of the profit maximizing decisions of monopolistically competitive firms is that price charged under monopolistic competition is higher than under perfect competition, and the quantity produced is simultaneously lower. Apparel retail market with many stores and differentiated products provide an example of monopolistic competition. Oligopoly Oligopoly is a common market