This preview shows page 1. Sign up to view the full content.
Unformatted text preview: monopoly because there are very few competitors. Microsoft is supervised by contracts and patents that create strong barriers for its potential competitors. Oligopolies: Oligopoly is group of sellers, who work together and have some control over the prices of a commodity in which there are few independent providers. Negotiations are managed via contracts. Oligopoly is a market that controls a commodity and is dominated by a small number of firms that act on one behalf. How is price determined in each market structure in terms of maximizing profits? Competitive Market In the competitive market no business has more market power than another. The environmental conditions measure and determine the market structure. No specific company has more power than the next. In a competitive market structure substitutes are common so competition can be easily adhered....
View Full Document
- Spring '11