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Which market structure would a company with high start up cost and ongoing expensive advertising and promotional campaigns most likely belong to?

Which market structure would a company with high start up cost and ongoing expensive advertising and promotional campaigns most likely belong to?

What are the three practices of oligopolies that concern the government the most? slightly above their costs in the long run. Which market structure would a company with high start-up costs and an ongoing expensive advertising and promotional campaigns most likely belong to? a price war.

Which market structure is known for having high start up costs?

Monopolistic competition because there are usually high start up costs or other barriers to entry into an oligopoly.

What market structure advertises the most?

monopolistic competition
Firms in monopolistic competition tend to advertise heavily. Monopolistic competition is characterized by heavy spending on advertising and marketing, which some economists characterize as a waste of resources.

What is a oligopoly market?

Oligopoly markets are markets dominated by a small number of suppliers. They can be found in all countries and across a broad range of sectors. Some oligopoly markets are competitive, while others are significantly less so, or can at least appear that way.

Is any feature of a business firm that enables it to earn a high return on investment despite counter pressure from competitors?

Pitts and Snow define a competitive advantage as “any feature of a business firm that enables it to earn a high return on investment despite counter pressure from competitors.” Thus, a competitive advantage enables a firm to create superior value for its customers and superior profits for itself.

What is an example of predatory pricing?

If you had a competitor that was selling a TV at $100, and you sold the same TV at $80 (while taking a loss) because you knew they couldn’t beat your price, you’re inacting in predatory pricing. This is illegal in many countries and is treated very harshly by many justice systems.

What kind of market runs most efficiently?

Prentis Hall Economics New Ulm

Question Answer
A market that runs most efficiently when one large firm supplies all of the output is referred to as a natural monopoly. The United States Postal Service is an example of a natural monopoly.
The right to sell a good or service within an exclusive market is a francise.

What are the 4 types of markets?

Such market structures refer to the level of competition in a market. Four types of market structures are perfect competition, monopolistic competition, oligopoly, and monopoly. One thing we should remember is that not all these types of market structures exist. Some of them are just theoretical concepts.

What are the 4 basic market structures?

There are four basic types of market structures.

  • Pure Competition. Pure or perfect competition is a market structure defined by a large number of small firms competing against each other.
  • Monopolistic Competition.
  • Oligopoly.
  • Pure Monopoly.

Which is market structure would a company with high start up costs belong to?

Which market structure would a company with high start-up costs and an ongoing expensive advertising and promotional campaigns most likely belong to? oligopoly A series of competitive price cuts that lowers the market price below the cost of production is a price war.

Which is market structure hold the most market power?

Firms in which market structure hold the most market power? monopoly Factors that cause a producer’s average cost per unit to fall as output rises are economies of scale. A market that runs most efficiently when one large firm supplies all of the output is referred to as a natural monopoly.

What are laws that encourage competition in the marketplace called?

Laws that encourage competition in the marketplace are called A trust is like a cartel, an illegal grouping of companies that discourages competition. Many critics argue that government efforts to regulate industries have caused

What makes it difficult for a new firm to enter a market?

Any factor that makes it difficult for a new firm to enter a market is referred to as a barrier to entry. Perfect competition is a market structure in which a large number of firms all produce the same product. A landscaper purchases a lawnmower, a rake, a truckload of gravel, and a chainsaw.