Companies that deal in commodities common to

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: monopolistic competition to oligopoly to pure monopoly. At one end of the continuum is pure competition, in which every company has a similar product. Companies that deal in commodities common to agribusiness (for example, wheat, rice, and grain) often are in a pure competition position in which distribution (in the sense of shipping products) is important but other elements of marketing have little impact. In the second point on the continuum, monopolistic competition, the many sellers compete with their products on a substitutable basis. For example, if the price of coffee rises too much, consumers may switch to tea. Coupons or sales are frequently used marketing tactics. Oligopoly, a common industry structure, occurs when a few companies control the majority of industry sales. For example, AT&T, MCI, Verizon, and Sprint control approximately 80 percent of the $16 billion international long-distance telephone service market. Similarly, the entertainment industry in the United States is domin...
View Full Document

This document was uploaded on 01/30/2014.

Ask a homework question - tutors are online