1. Companies compete with one another by creating products for individual groups of people, rather than making one product for everyone to satisfy a wider range of needs.
2. If prices are close to one another, a customer will choose which product tastes better to them.
3. Oligopoly requires companies to compete with one another with something besides price.
Monday, December 20, 2010
Thursday, December 9, 2010
Post 7 - Name the 4 varieties of monopoly and give a real or fake sample of each.
1. Natural Monopoly- Public utilities such as water service
2. Geographical Monopoly - Bait Shop Near water
3. Technology Monopoly - Wind Mills
4. Government Monopoly - Postal Service
2. Geographical Monopoly - Bait Shop Near water
3. Technology Monopoly - Wind Mills
4. Government Monopoly - Postal Service
Post 5 - Please write a blog entry on one monopoly or cartel (oligopolies that cooperate) that you want broken up and how that change would benefit you, your friends, and family.
An Oligopoly that I would like to see broken up is the gas industry. If this oligopoly were to expand and allow more companies this would allow for more competition. If there is more competition in the gas industry this will drive the price down which would in turn not only help me, but help everyone else driving an automobile.
Post 4 - Please follow this link and take the three practice quizzes and write a blog about the 8 things you learned from these quizzes.
1. Oligopoly is the most common non competitive market in the US
2. Price wars only occur when the price policy fails
3. A cartel doesnt have to just deal with drugs
4. Something such as diamonds can be part of a cartel
5. Another word for monopoly is a trust
6. One of the best known monopolies was Sherman Oil
7. In the 1940's the US passed many laws to break up monopolies
8. Laissez-faire means "Hands Off"
2. Price wars only occur when the price policy fails
3. A cartel doesnt have to just deal with drugs
4. Something such as diamonds can be part of a cartel
5. Another word for monopoly is a trust
6. One of the best known monopolies was Sherman Oil
7. In the 1940's the US passed many laws to break up monopolies
8. Laissez-faire means "Hands Off"
Tuesday, December 7, 2010
Post 3 - Pick 5 things you wanted to purchase/actually did purchase recently and identify the market structures the product exists in. After each item - write 3-4 sentences explaining your opinion.
1) Oligopoly - Cereal - there are a wide range of similiar cereals that available for everyone to purchase. Since there is no one company creating cereals, these area is an oligopoly.
2) Monopoly - PSEG - PSEG is an example of a monopoly since in this area, this is the only company we are able to recieve electric from. Since there are no other companies competing PSEG is a monopolistic Company.
3) Oligopoly - Phone Companies - since there are multiple phone companies to choose from such as Verizon, Sprint, T-Mobile, AT & T, there is no one phone company controlling the market, which allows each company to take part in the competition which is an Oligopoly, they are all different companies doing the same thing
4) Monopolistic Competition - Kinect - Since Kinect is the only gaming camera capable of making you the controller without actually using a remote, it doesn't allow consumers to pick another product. The only other products out are motion sensor gaming which is the same concept as Kinect but different allowing Kinect to be a Monopolisic gaming add-on
5) Oligopoly - Lacrosse Sticks - Companies that make lacrosse sticks such as brine, stx, reebok, maverick, nike, warrior all make lacrosse sticks that are similiar, this allows consumers to pick which company they would like to purchase from, making these companies an Oligopoly.
2) Monopoly - PSEG - PSEG is an example of a monopoly since in this area, this is the only company we are able to recieve electric from. Since there are no other companies competing PSEG is a monopolistic Company.
3) Oligopoly - Phone Companies - since there are multiple phone companies to choose from such as Verizon, Sprint, T-Mobile, AT & T, there is no one phone company controlling the market, which allows each company to take part in the competition which is an Oligopoly, they are all different companies doing the same thing
4) Monopolistic Competition - Kinect - Since Kinect is the only gaming camera capable of making you the controller without actually using a remote, it doesn't allow consumers to pick another product. The only other products out are motion sensor gaming which is the same concept as Kinect but different allowing Kinect to be a Monopolisic gaming add-on
5) Oligopoly - Lacrosse Sticks - Companies that make lacrosse sticks such as brine, stx, reebok, maverick, nike, warrior all make lacrosse sticks that are similiar, this allows consumers to pick which company they would like to purchase from, making these companies an Oligopoly.
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