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... and Nokia second with 20% • In 2002, leadership reversed: Nokia held 37% of the market and Motorola 17% • However, technology in phones is changing, bringing wireless web, photos, and other high-speed G3 technologies • Entry of other firms and new products, such as Dell, Palm, NEC and Panasonic pose ...
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... Businesses also pursue additional aims and these may be satisficing rather than maximising Divorce of Ownership and Control means that the owner of the business does not run it Law of Diminishing Returns states that as more inputs are added to production output will initially rise and then it will f ...
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... cost. It is worthwhile to increase output as long as the additional revenue gained by doing so exceeds the additional cost incurred. When additional revenue = additional cost, the firm should not increase its output any further. This rule not only applies to monopolists but also to firms operating i ...
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... 1. People face tradeoffs : • “No such thing as free lunch” • Give up one thing to get another – Opportunity Cost (OC) 2. Everything has an OC – whatever must be given up to get that item 3. People make decisions at the margins – increments matter 4. People respond to incentives – e.g. cigarette laws ...
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... Here we are assuming that the two firms have identical cost curves. In each case, the marginal cost curve intersects the marginal revenue curve at the quantity where the average total cost curve is tangent to the firm’s demand curve. The point of tangency between d, MC and ATC in perfect competition ...
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... at a price > $5, or you will not buy it at $5. At price $4, you buy two units. The second unit must has value $4 to you. Otherwise you would have bought it at a price > $4, or would not buy it at $4. 2. The surplus Take Figure 9.1 (a), the transaction is 3 units at $3. The surplus is the $ amount yo ...
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... 1. Perfect Price Discrimination Perfect or first-degree price discrimination refers to the situation when the monopolist knows exactly the willingness to pay of each customer and can charge each customer a different price, according to his/her willingness to pay.  Perfect price discrimination is d ...
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... its economic loss, then taxes must be imposed on some other economic activity. This tax creates deadweight loss in the allocation of resources in the taxed market. b) Where possible, a regulated natural monopoly might be permitted to price discriminate to cover the loss from marginal cost pricing. ...
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... Pre-assigned groups of 5-6 students will prepare a marketing report for a new product/service which is not available in North Cyprus`s consumer or business market. The students should import a product/service to North Cyprus. The students are free to enter any market (e.g. pharmacy, medical, technol ...
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... the collection and study of information about what people prefer to buy, how they react to advertising, and what other businesses in the same industry are doing: carry out/do/perform market research Carrying out market research showed that customers thought our phones were too heavy and too ugly. a ...
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Firm
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... This figure shows the marginal-cost curve (MC), the average-total-cost curve (ATC), and the averagevariable-cost curve (AVC). It also shows the market price (P), which for a competitive firm equals both marginal revenue (MR) and average revenue (AR). At the quantity Q1, marginal revenue MR1 exceeds ...
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Perfect competition

In economic theory, perfect competition (sometimes called pure competition) describes markets such that no participants are large enough to have the market power to set the price of a homogeneous product. Because the conditions for perfect competition are strict, there are few if any perfectly competitive markets. Still, buyers and sellers in some auction-type markets, say for commodities or some financial assets, may approximate the concept. As a Pareto efficient allocation of economic resources, perfect competition serves as a natural benchmark against which to contrast other market structures.
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