Free market models
· the pure competition model – this is an idealized free market where all firms produce homogeneous products (i.e., the same), none of whom possess more than a marginal cost or production advantage, enabling them to sell at least as cheaply as any competition. lacking barriers to entry, no firm has any power over its competitors and so they can survive only through continued innovation and good management practices. the pure competition model assumes perfect information about prices, products and company actions so that consumers always know what they are buying and can best take advantage of it.
the degree of market concentration in a given industry will determine how far from this idealized form any particular industry will be found from time-to
which market model is an example of the automobile industry?
although the american market is an example of an “over-the-counter system” that can be considered similar to other markets, the chinese market is more closely modeled after a different type of control.
the indian marketplace for automobiles operates mainly on over supplied level, which means that there are numerous distributors who sell to numerable vendors at the same price. the centralization controls are mandated by legislation and higher level administrative bodies. the goods may also flow online or through government controlled auctions. on this note, china regulates its automobile industry with manufacturer concentration limits agreed upon by the direct selling association. this limits competition among companies but provides manufacturers strong influence in production decisions rather than retailers because they have no requirement to coordinate their efforts with them unlike other
what market classification is the steel industry?
the steel industry is a vital and complex sector.
the steel industry has changed dramatically in recent years, with much higher costs and much higher demand.
this means that the margins for the steel industry have decreased as production levels have increased.
iron ore extraction is very tough on both human beings and the environment, so it's important to be good stewards of this natural resource as we consume it at such high rates. steelworkers often develop serious health problems because of the extended periods they spend working around toxic chemicals – so now more than ever we need to be paying special attention to those who are putting their safety on the line for our benefit, and ensuring that we're paying them a living wage where possible alongside safe working conditions.
in which market model would there be a unique product for which there are no close substitutes?
answers:
a) first-degree price discrimination
b) second-degree price discrimination
c) third-degree price discrimination
which industry would be the best example of an oligopoly?
some examples of oligopoly industries would be airlines, professional sports (basketball, football), and oil.
