Submitted by: Submitted by molpaul
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Category: Business and Industry
Date Submitted: 07/08/2013 09:33 AM
Week 4 Reflections
I found this week’s class room discussions to be very insightful. This week’s learning objective was to determine the economy’s stage in the business cycle and to evaluate current macro economic conditions based on key indicators. We also learned about market models consisting in business pure monopolies, oligopoly, pure competition, and monopolistic structures. In pure monopolies a single firm is the sole producer of a product for which there are no close it substitutes, and the firm has a considerable control over the price because it can control the quantity supplied. An example of this would be like any professional sports team. An oligopoly is when a market is controlled by a small group of firms. A oligopoly is much like a monopoly in which one company has control over most of the market, there is at least two firms which controls the market. An example of this would be the gas market because a small number of firms control a large majority of the market. Pure competition is a situation where the market for a product is populated with so many consumers and producers that no one entity has the ability to influence the price of the product. At the same time consumers have little influence over the prices offered by the producers, since there is no singular group of consumers that dominate the demand. In a monopolistic competition many producers sell products that are different from one another but not perfect substitutes. There are many producers and many consumers in the market and no business totally controls the market.