• Home
  • Subjects
  • Marketing
  • The Possibilities And Effects Of Raising Prices Above Competitive Levels In Oligopolistic Markets.

The Possibilities And Effects Of Raising Prices Above Competitive Levels In Oligopolistic Markets. - Assignment Example

Only on StudentShare

Extract of sample
The Possibilities And Effects Of Raising Prices Above Competitive Levels In Oligopolistic Markets.

Examples of oligopoly in our economic system today include Steel industry, Aluminum, Film, Television, Cell phone and Gas among others (Perloff 2011).
The probability of raising prices above the competitive levels demand a detailed understanding of the oligopolistic markets and the influential trends involved. Normally, the possibilities prevalence depends on the desire of the involved firms for success. In this piece, the mention of the possibilities would imply the probability of occurrence of raised prices above the competitive levels. In this situation, when such an issue is mentioned, many would tend to begin asking themselves on whether the probabilities are activity prompt or automatic.
Again the choices by the firms in the market that attribute to alteration of the prices beyond the competitive levels have consequences. Moreover, the essential point to understand in this scenario is the essence of prices, their thresholds and the effect of status in the oligopolistic market (Mansfield 1982).
Oligopolistic markets have variant features relating to the prices such as the limited number of firms selling the same commodities. If there are a number of firms dealing on similar products then it implies that there must be a significant extent of competition for which the price is a critical factor. Altering the price in a particular firm would impact the entire market since one of the market forces is altered. ...
Download paper

Summary

Oligopoly is the middle ground between monopoly and capitalism. He describes an oligopoly as a small group of businesses, two or more, that control the market for a certain product or service (Samuelson & Marks 2002). …
Author : greenholtleonor

Related Essays

Financial Markets and Risk
Capital liquidity is the cash being maintained by the other financial institutions and the banks and the balances with the central bank. Generally, the banks with a lot of liquid assets are in a lot safer position regarding a meeting of any unexpected withdrawals. There are liquidity management measures, which manage liquidity positions that ensure the funding requirements. It also helps in meeting payment obligations under normal or stressful situations. In simpler words, liquidity for the bank means the ability to meet its financial obligations as they arrive in the due course of time. They...
10 pages (2510 words) Research Paper
Markets
The latter performs the process of lending after purchasing securities from the market instead of directly giving out loans. These include insurance companies, investment trusts, pension funds, mutual funds and so on. The major outcome of financial intermediaries is to ensure that at all times there is a steady flow of funds, including cash, which moves smoothly from the surplus units to the deficit units. This in turn will result in regular investments to boast the economy and help support the growth of activities in the market in general. By doing so the ideal funds will be utilized in the...
6 pages (1506 words) Coursework
Segmenting markets
Factor Analysis is a statistical tool that helps in understanding variables, or factors among the correlated and observed variables. It is mostly used to determine the variations in a larger number of groups by identifying the small number of factors within the large number of a particular group The first step is to select a method for factor analysis. There are two methods while conducting a factor analysis which are known as exploratory factor analysis and confirmatory factor analysis. Exploratory factor analysis is a technique for factor analysis which is often used for a larger set of...
5 pages (1255 words) Essay
Competitive Strategies. Chaos Camera Company Competitive Advantages.
The analysis is made on all these accounts and keenly canvasses the company on the competitive advantage it gains over other companies in the industry and the strategies that the company undertakes to sustain this advantage. Competitive advantage being key to any business’ success is therefore a crucial aspect of a company and is well elaborated throughout the course of the paper. An analysis of the strategic approach that the company made to compete successfully in four geographic regions is also made. We also examine the ways that the company could improve the important value chain...
10 pages (2510 words) Assignment
Dodge Journey, Dodge Avenger See Prices Drop
Apart from the destination charges for Dodge Journey, others’ destination charges have remained same. However, the prices of Dodge Avenger and Chrysler 200 have reduced to $18,995 comparing to $19,245 of last year. In case of Dodge Journey, the sales price has been dropped significantly i.e. by $1,450. The primarily reason for such significant prince changes is due to compete with market leaders in midsize automobile manufactures like Suzuki, Ford, Kia etc. Chrysler has given more focus on its Dodge Journey as it is believed that with reduced price ($20,995), it has become one of the most...
4 pages (1004 words) Article
Competitive Strategy
On the other hand, Microsoft and Arcelik engage in the sale of similar electronic products and consequently have posed a challenge in the growth and development of Samsung. The essence of this article is to define new investment strategies that Samsung can use to strategize on its way up to business success in Turkey. Arcelik is a company that has dominated the Turkey business industry and has majored on the sale of household products, electronic goods and kitchen accessories, which ultimately have developed a unique customer interest in this organization. In 2008, the company managed to...
3 pages (753 words) Research Paper
Emerging markets
Countries globally are developing by encouraging foreign direct investments (FDI). They are doing this in order to increase their economic strength and move forward economically. Emerging markets have developed in various countries especially developing countries. Emerging markets attract FDI based on the mode of the economy in terms of development, political and market share. This paper explains foreign direct investment (FDI) in emerging markets and focuses in China as one of the emerging markets encouraging FDI. Justification of the Topic Foreign direct investment (FDI) in emerging markets...
11 pages (2761 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!