Bus 305

BUS 305/Competitive Analysis and Bus. Cycles

Competition and Market Power CS/ MOD 3

Dr. DAN CORCORAN

COMPETITION

Before writing about the main issues concerned with the competitive market place, we will write about the critical issues that arise in the market. It will assist in understanding the market and its structure effectively. After reviewing the following questions, I have selected three critical issues I.e. Firms in competitive market, monopolistic & antitrust enforcement and the consumer. All these stated issues are very critical in order to understand that which market structure is more suitable for the firm according to their requirements.

Market structure is the one of the most commonly used approaches to study the behavior of the firms in an economy. Proper understanding of the market structure helps in effective decision making and also helps the industries or business firms to earn profit in the long run. It also helps in analyzing the role of demand and supply in the price discrimination. The detail reports that cover all the three stated above issues are as followed. Above, we identified the critical issues in the market. Now, we will write about the firms in competitive markets. It will assist in analyzing the critical issue of Florida Citrus Web Site on the basis of its advertising. Along with this, the impact of advertising on the demand and supply will also be discussed.

Firms in competitive market are the critical issue with the ‘Florida Citrus Web Site’ that ‘Is there any separate advertising for the individual growers or there is common advertising for the state orange industry?   Firms in the competitive market end up being collegial, it means that the individual orange growers or firms in perfect competition are price takers I.e. Firms only takes the market price as given for their products rather than determining the price for their products through its own behavior. In this market...