Question

1. Describe the different forms of competition and give specific examples of these competitors with regard to a particular firm. Explain the strategic choices as to how these firms are positioning themselves to handle these competitors.+

500 word minimum

Answer 1

Answer:

There are different forms of competition namely, perfect competition, monopolistic competition, oligopoly and monopoly.

1. Perfect Competition-

In a perfect competition, there are an enormous number of purchasers and venders. All the sellers of the market are small dealers in rivalry with one another. There is no huge seller with any critical influence available. So all the organizations in such a market are value takers.

There are sure presumptions while talking about the perfect competition. The existence of the perfect competition in the market is a hypothetical concept. These assumptions are as per the following,
The items available are homogeneous, for example they are totally indistinguishable
All organizations just have the objective of profit earning.
There is free passage and exit from the market, for example there are no boundaries
Furthermore, there is no understanding of buyer preference.

2. Monopolistic Competition-

In monopolistic competition, we actually have numerous sellers. They don't sell indistinguishable items. Items can be separated in various manners, including quality, style, comfort, area, and brand name. A few people incline toward Coke over Pepsi, despite the fact that the two items are very comparable. However, consider the possibility that there was a generous value contrast between the two. All things considered, purchasers could be convinced to change from one to the next. Hence, if Coke has a major limited time deal at a store chain, some Pepsi consumers may switch even if it on a temporary basis.

3. Oligopoly-

Oligopoly implies few sellers. In an oligopolistic market, every dealer supplies an enormous part of the apparent multitude of items sold in the commercial center. What's more, on the grounds that the expense of beginning a business in an oligopolistic industry is typically high, the quantity of firms entering it is low.

Organizations in oligopolistic businesses incorporate such huge scope endeavors as car organizations and carriers. As huge firms providing a sizable part of a market, these organizations have some power over the costs they charge. In any case, there's a trick: since items are genuinely comparable, when one organization brings down costs, others are regularly compelled to go with the same pattern to stay serious. You see this training constantly in the carrier business: When American Airlines reports an admission decline, Continental, United Airlines, and others do in like manner. At the point when one automaker offers an exceptional arrangement, the other competitors do the same to stay in the market.

In the cellular industry there are 3-5 dominant firms (Airtel, Vodafone, Jio etc). These are the price setters. And consumers have a limited choice between these few choices.

4. Monopoly-

As far as the quantity of venders and level of rivalry, monopolies lie at the furthest edge of the range from perfect competition. In perfect competition, there are numerous little organizations, none of which can control costs; they basically acknowledge the market cost dictated by flexibly and request. In a monopoly, notwithstanding, there's just a single merchant in the market. The market could be a geological territory, for example, a city or a provincial region, and doesn't really need to be a whole nation.

There are hardly any monopolies in the United States in light of the fact that as far as possible them. Most can be categorized as one of two classes: natural and legal.