(http Nicholas Bergan () Nov 7, 2019 Reply Brian, () When looking at firms in this market structure, you will find that they are selling identical products. Firms will be forced to sell their products at the market price. How do you think firms can establish the price that should be charged in markets and why are they not able to raise prices? (http Edgardo Fernandez () Nov 8, 2019 Brian, Great post. I agree with your findings. It is ridiculous how some of these utility companies can like you said set their own price and since they are the main (or only) utility service in that area. The time I was in Alaska there was only one company that provided cable and internet connection. My question is do you think the government would help with utility monopoly or do you think it would not make a difference at this point?
Reply (https:// Curtis Mitchell () Nov 6, 2019 Hello Class, Module 4 Market Price & Quantity State the firms you selected. I have selected Netflix and Target as the firms that I will be discussing. Identify the equilibrium point for each market structure assigned. In my view with Netflix, Netflix is a Monopolistic Competition, and the reason I speak to that is due to the fact that Netflix has currently and up and coming competitors who are offering similar streaming services. Now it is clear that the others companies are somewhat selling similar products but not identical. So does this mean that Netflix still have a level of control or as it would be called as Monopolistic Competition? This is where the product differentiation plays the bigger role in my view. I do think that Netflix is well aware of the fact that if doesn’t offer something different than what others are offering then it will lose the game. And that is why Netflix focuses on launching its own series of shows, this will be key into staying ahead of the others in my view. Next is Target Corp. With most firms that are a retail and in some cases have the ability to drive markets. In the case with Target they have some degree of market power, and with this company, they take the steps to sell products that have real or perceived non-price differences. Sales that hook you in. According to Essentials of Economics, “Because of their “fewness,” oligopolists have considerable control over their prices, but each must consider the possible reaction of rivals to its own pricing, output, and advertising decisions (Brue, McConnell, Flynn, & Grant, 2010, p. 210).” So what does this mean for the market, I think this means that the company can control how much they charge on all of the products within their company. If they change their prices, they should be careful since rivals might change prices to match the lower price being offered.
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