Competition Notes

Competition Notes - Competition Notes In Canada we rely on...

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Competition Notes In Canada we rely on competition among producers to create choices for consumers and keep priced down within markets Competition is the primary mechanism that ensures firms remain accountable to consumers as well as to their managers and shareholders How do companies compete? o Price o Non-Price Quality Warranties Latest style Best Location Not all markets are the same, there are five factors that determine market structure o The number (and size of firms) o The degree to which a competitors’ products are similar o A firm’s control over price o The ease with which firms can enter or leave the market o The amount of non-price competition Perfect competition o A competitive situation in which there are many smaller firms, each selling an identical product in a market where they can freely enter and exit. o There are many small firms in perfect competition, with each firm producing only a small percentage of the total output of the product
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This note was uploaded on 02/05/2011 for the course ECON 011 taught by Professor Yezer during the Fall '07 term at GWU.

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Competition Notes - Competition Notes In Canada we rely on...

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