ECON 1011 Lecture Notes - Lecture 20: Oligopsony, Variety Store, Monopsony
ECON 1011 verified notes
20/24View all
Document Summary
Perfect competition: many many consumers in the market. Incumbent firm (original firms) profit face reduction of profit. Distinguishing your good: unique color, design, function, shape, materials, etc. If there is a lowering of cost, don"t let others know. Will make positive profits for firms, but other competitors won"t know to lower their products for consumers in the marketplace. Buyer agrees only to buy from you. Employee must agree not to leave and start competing business. Enhance service: warranties, helplines, delivery options, repairs, etc. longer-lasting, more resilient. Protect a new product with a patent. A wasteful activity trying to get you to change your preferences in. Induces people to buy what they don"t want or need: deception. Mergers and acquisitions: a way to get rid of competition: buy them out. a way that may not be what you truly want. Read at&t - time warner merger story. Get a bunch of companies together to try and make monopoly-like profits.
