ADMS 1000 Study Guide - Final Guide: Switching Barriers, Paten, Fixed Cost

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burgundyshark6

16 Oct 2011

School

York University

Department

Administrative Studies

Course

ADMS 1000

Professor

Eytan Lasry

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ADMS 1000 Full Course Notes

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Model: michael porter, 5 forces influence the firms to a degree to make money, branch of economic, social welfare is maximized. Flip on its help (michael porter: gain monopolistic characteristic, distort completion = more profit and money. Industry: many firms with similar machines, resources, etc. Example: beer brewing, air company, book store (online) Economies of scale: reduce cost with higher production, fixed cost to the production of products, higher: that means older costumers; new companies would have to work, low barriers; services would have to work harder, varies depended on consumed. Example: account: when first started: fixed cost (computer, table, desk, etc, latter become better make more money due to more clients. Either high to low barriers (amount the examples: economies of scale, switching cost for buyers, access to disruption channel, cost disadvantage. Example: switching from company to company: contracts (3 years, cost. Channels: pharmaceutical to tell doctors to use specific drugs. Example: doctors and pharmaceutical: selling drugs to doctors.

Related Questions

1) A natural monopoly exists when:

a. A few firms collude to make one large firm

b. Firms enter the industry as a result of profit incentives

c. Economies of scale provide large cost advantages to having one firm produce the industry's output

d. Firms naturally maximize regardless of market structure

2) A(n) ____ is a single firm with ___, whereas a(n) ___ implies an industry with ____ firm(s) and ____ .

a. Monopoly; barriers to entry; oligopoly; few; no barriers to entry

b. Oligopoly; no barriers to entry; monopoly; many; easy entry and exit

c. Monopoly; barriers to entry; monopolistic competition; many; easy entry and exit

d. Monopolistic competitor; barriers to entry; monopoly; one; barriers to entry

3) In monopolistic competition:

a. Each firm produces a product identical to that of every other firm in the industry

b. Firms are aware of their strategic interdependence

c. Firms earn large economic profits in the long run

d. Firms earn zero economic profits in the long run

4) A monopolistically competitive industry, such as corn snack chips, and a perfectly competitive industry, like wheat farming, are alike in that:

a. There are many firms in each industry

b. Firms in both types of industries produce similar but not identical products

c. Barriers to entry in both industries are large

d. Firms in both types of industries produce identical products

byzantiumfish483

1 How does monopolistic competition differ from the pure competition in its basic characteristics? From pure monopoly? Explain fully what product differentiation may involve. Please explain how the entry of firms into its industry affects the demand curve facing a monopolistic competitor and how that, in turn, affects its economic profit.

2 "Competition in quality and service may be just as effective as price competition in giving buyers more for their money." Do you agree? Why? Explain why monopolistically competitive firms frequently prefer nonprice to price competition.

3 Critically evaluate and explain:
a. In monopolistically competitive industries, economic profits compete away in the long run; hence, there is no valid reason to criticize such industries' performance and efficiency.
b. In the long run, monopolistic competition leads to a monopolistic price but not to monopolistic profits.

amethystjellyfish726

10) For the Monopolistic Competition Market Structure

a) List and explain the characteristics of monopolistic competition and compare them to the characteristics of pure competition and monopoly.

i) Please discuss monopolistic competition, list and explain the characteristics.

b) List and explain the characteristics of product differentiation. Provide 3 examples of companies actually using this technique and the impact of that differentiation had on the firmsâ performance.

i) Product differentiation is a key concept of microeconomics. Please list and explain the characteristics.

c) You are a business manager at a monopolistically competitive firm. One of your newly hired workers wants to know the conditions under which the monopolistically competitive firm in the short run will maximize economic profit or minimize economic loss. Please explain these two things to your new employee. Be thorough.

i) Please use the MR MC approach in your answer.

apricotferret390

ADMS 1000 Study Guide - Final Guide: Switching Barriers, Paten, Fixed Cost

ADMS 1000 Full Course Notes

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