Eco365_ Wk4_ Heatyer Taylor_ Differentiating Between Market Structures

Differentiating Between Market

StructuresHeather Taylor

Eco/ 365Oct. 12, 2015Mrs. Murry

About

Business Market Structures

• Oligopoly• Perfect Competition• Monopoly• Monopolistic Competition

Oligopoly

• Success in Oligopoly• upstream and • downstream

Perfect Competition

• Buyers and sellers are price takers

• There are no barriers to entry

• Firms’ products are identical

Monopoly

Profits and Monopoly• Draw the firm’s marginal

revenue curve.• The output produce by the

intersection of the marginal cost and marginal revenue curves.

• The price charge for that output. • The monopolist’s profit

Monopolistic Competition

• Many sellers• Differentiated products• Multiple dimensions of

competition• Easy entry of new firms in

the long run

Skechers Competitive Strategies

• Expected changes in supply and demand

• Price elasticity of demand• Market structure

Expected changes in supply and demand

• Upward change in supply and/or demand

• Downward change in supply and/or demand.

Price elasticity of demand

• High priced shoes• Discounted shoes• Peak seasons

Market structure

• Ethics• Price• Supply and demand

The ethical implications

• Ethics• Values• Morals

Skechers’ current values

• Integrity• Morals• Value• Trust• Dependability

My own values on the strategy

Ethics• Integrity• Morals• Value• Trust• Dependability

Reference

Colander, D. C. (2013). Economics (9th ed.). Boston, MA: McGraw-Hill/Irwin.University of Phoenix. (2011). Escalation with Successive Oligopoly. Retrieved from University of Phoenix, Eco 365 website.University of Phoenix. (1937). On the Definition of Monopoly. Retrieved from University of Phoenix, Eco 365 website.