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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
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...
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This document was uploaded on 01/30/2014.
- Spring '14