ADMS 1010 Tutor 2.docx

3 Pages
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Department
Administrative Studies
Course Code
ADMS 1010
Professor
Barry O' Brien

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Description
ADMS 1010 Class 2 Perfect Competition 1. Many sellers of the product so that no individual seller produces a significant share of the quantity available to the market. 2. All firms produce exactly the same product. The products of all firms are similar. 3. All buyers given full information about the market. 4. Productive resources are perfectly mobile a. A market structure with at least 2 buyers and 2 sellers, but preferably more. b. A mixture of large and small firms c. No collision or cohesion among seller 5. Desirable Conditions for workable competition a. A market structure with at least 2 buyers and 2 sellers, but preferably more. b. A mixture of large and small firms c. No collision or cohesion among sellers d. All possible market info is available to buyers and sellers e. No barriers to entry and exit Cases (Eaton’s and Wine) Imperfect Competition It is an industry in which single firms have some control over the price of their output ex. Monopoly, oligopoly, and monopolistic competition.  Market power is the imperfectly competitive firm’s ability to raise price without losing all demand for its product. Monopolies and Prices  Competition forces firms to adjust prices to the market  Monopoly allows firms to set prices Oligopoly  Found initially on scale and scope elements of production and distribution  Secure by scale and scope distribution  Research marketing and development  Flexibility and innovation can falter in the face of the needs of the dominant brand  The oil sands-energy needs  Giants can, however and do stagnate Cases (Inco and Oil)  Oil industry has an early history of monopoly and a late of oligopoly  Product branding and create a entry barrier  Interdependent decision-making  Non prize competition (Service Based) Vertical and horizontal integration Car Buyer Garage owners Car importers Car manufacturers Suppliers Commodity producers Investment Canada  The investment Canada act allows the minister 45 days to determine whether or not an application for review should be allowed, but the minister may unilaterally extend by an additional 30 days. Cultural industry reviews often require at least 75 days to complete What does net benefit to Canada mean? (Memorize) Net benefit to Canada is a test which focuses on the level of econ activity in Canada including employment, resources, processing, and utilization of parts and services produced in Canada and Canadian exports, together with the degree and significance of participation by Canadian in the business, the effects of the investment on productivity, competition, national industrial economics and cultural policies and the contribution of the investment to Canada stability to compete in world markets, among other matters. Advantages of Foreign Take-over 1. It would gain access to new markets, technology and knowledge, which is often the effect of foreign direct investment, where in a non-national corp. or individual has an operating and controlling interest in a firm. 2. The gov’t is concerned about job creation and other opportunities within the country 3. T
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