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Economics: Market structures and market strategies (Essay Sample)

You will apply important microeconomics concepts toward identifying competitive strategies that could help a firm competing in an industry that you will select to maximize the firm's profits over the long run. You will evaluate the differences between four (4) market structures. Then, you will identify the market structure in which the industry you will select operates. You will identify competitive strategies that you believe would work in the industry's market structure. You will assess how the market structure positively and negatively affects the firm and evaluate the efficacy of using the competitive strategies in that market structure. Complete the Differentiating Between Market Structures Table provided for you in the Appendix of this Syllabus. Compare the various characteristics of the four (4) market structures by completing the Table. Give a hard copy of the Table to your instructor at Workshop 3. Write a 750- to 1,050-word Paper that includes the following information. Give a hard copy of the Paper to your instructor at Workshop 3: - Select an industry. Identify a firm in that industry. - Identify the market structure in which that firm competes. Clearly indicate why the market structure was decided upon, and how this market structure differentiates from the other market structures. - Identify three or more competitive strategies that may be used by the firm to maximize its profits over the long run. Evaluate the efficacy of using these strategies in the market structure you have identified. - Make recommendations about these strategies in a manner intended to convince the firm's management to use the strategies to maximize the firm's profits. Format your paper consistent with APA guidelines source..

Market structures and market strategies
Market structures and market strategies
The computer or IT industry has been growing very fast in the recent past. The increased growth of the industry has resulted from the increasing digitization of operations all over the globe. The world has also become global: a small village to live where people need to connect and conduct business over long distances without physically travelling. Dell Corporation is one among so many other companies that has ventured into the computer industry. The computer industry is the range of operations involved in the development of computer software, designing of computer hardware, and computer infrastructures. The industry extends to the manufacture of a wide range of computer components and shaping of the nature of information technology CITATION Jef05 \l 1033 (Yost, 2005). Firms in this industry operate with the main objective as making profits. To make profits and maintain profit sustainability in such a fast growing industry, a firm needs to adopt the most realistic and competitive market strategies. The characteristic of a given market structure is independent on many factors. These factors include the size of the given firm in proportion to the industry, the number of firms in the industry and their market share, consumers` behavior and so on. The different degrees of competition make up for the different market structures. The four main market structures include perfect competitive market; monopoly; monopolistic competition; and oligopoly CITATION Sky12 \l 1033 (Carl, 2012). A monopoly market structure has only one firm as the supplier. The firm sells products that have no close substitutes. The firm in the monopoly market structure controls the entire market share. Several factors contribute to the existence of a monopoly market. A firm may own a key resource, acquire exclusive rights for the production of a good and/or service from the government, or the cost of production may make a single producer more efficient than a combination of producers CITATION Sky12 \l 1033 (Carl, 2012). Monopolies regulate the quantity the produce in order to charge a high price. For this reason, monopolies affect the economy in a more negative way by taking resources away from the consumers; resources that can be used in the purchase of other goods and services. Oligopoly market structure is slightly different from a monopoly. In oligopoly, there exist a few firms producing a slightly differentiated product. The prices in an oligopoly market are also similar with the firms being the price makers.Perfect competitive markets are characterized by existence of many buyers and sellers. Firms are price takers as they produce and sell similar products. There is perfect information...
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