商务英语综合教程课件杜凤秋 ISBN9787810788113 PPT business organizationchap.6 types of competition.pptVIP

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商务英语综合教程课件杜凤秋 ISBN9787810788113 PPT business organizationchap.6 types of competition.ppt

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Different degrees of enterprices’ competition exist under market economy. Basis for classification: Company numbers involved in the industry The scale of the companies Product produced differentiation or not Perfect Competition Definition: Perfect competition means competition in which market forces operate without any outside interference also may be called pure competition. Methods of Product Differentiation: Charateristics Advertising Packaging Brand names Model or Design changes services 3. In a pure monopoly, a firm would have substantial control over pricing, but in a regulated monopoly, pricing is a subject to rules imposed by the regulatory body. 4. There are few directly competitive products in a regulated monopoly. 5. And entry into the industry is restricted by the government. * * Types of Competition Type of competition perfect competition imperfect competition monopolistic competition monopoly oligopoly Features: The sellers are price takers rather than price makers. There are a large number of competing companies. There is nothing to keep more companies from entering the market and firms can leave immediately with no delay whatsoever. All firms produce the exact same products. Everyone would have instantaneous and complete information about all firms. All firms have make profit as their one and only goal. Monopolistic Competition Definition: Monopolistic competition is a market structure in which many companies operate independent of each other (although not so many as to be the number approaching infinity specified by perfect competition) in an industry. Features: 1. The competing companies in monopolistic competition are not so much price takers as price setters and thus the demand curve is sloped, not set constant at the market price. 2. The relatively small size of these firms also makes it easy for any firm to enter or leave the industry. 3. In monopolistic competition, each firm offers a different type of product,