What is an agreement among firms to charge one price for the same good called?
Economics Chapter 7 Terms
|price fixing||an agreement among firms to charge one price for the same good|
|cartel||a formal organization of producers that agree to coordinate prices and production|
|predatory pricing||selling a product below cost to drive competitors out of the market|
What is a contract that gives a single firm the right to sell its goods within an exclusive market?
What is the difference between monopolistic competition and oligopoly?
Oligopoly is a market structure containing a small number of relatively large firms, with significant barriers to entry of other firms. Monopolistic competition is a market structure containing a large number of relatively small firms, with relative freedom of entry and exit.
What is a market structure in which many companies sell products that are similar but not identical called?
Monopolistic competition occurs when an industry has many firms offering products that are similar but not identical. Unlike a monopoly, these firms have little power to set curtail supply or raise prices to increase profits.
What is a market structure that does not meet the conditions of perfect competition?
Imperfect competition is a market structure that does not meet the conditions of perfect competition.
What market structure has the most control over prices?
What are the 4 levels of competition?
Economists have identified four types of competition—perfect competition, monopolistic competition, oligopoly, and monopoly.
How do you analyze your competitors?
Here are 5 steps you can follow to conduct your own competitor analysis.
- Identify your competitors.
- Gather information about your main competitors.
- Analyze the competition’s strengths and weaknesses.
- Talk to your competitors directly.
- Identify your competitive advantage.
Why is it important to know what your competitors are doing?
Knowing who your competitors are, and what they are offering, can help you to make your products, services and marketing stand out. You can use this knowledge to create marketing strategies that take advantage of your competitors’ weaknesses, and improve your own business performance.
Is it important to be competitive?
It creates jobs and provides people with a choice of employers and work places. Competition also reduces the need for governmental interference through regulation of business. A free market that is competitive benefits consumers- and, society and preserves personal freedoms.
What advantages do you have over your competition?
Benefits of Knowing Your Competitors’ Target Audience
- Stay Ahead.
- Reduce Trial and Error.
- Find a Niche.
- Learn About Your Customers.
- Learn How to Get Future Customers.
- Improve Customer Loyalty.
- Develop Your Own Positioning.
- Get Insights Into Your Strengths and Weaknesses.
What are examples of competitive advantages?
Examples of Competitive Advantage
- Access to natural resources that are restricted from competitors.
- Highly skilled labor.
- A unique geographic location.
- Access to new or proprietary technology. Like all assets, intangible assets.
- Ability to manufacture products at the lowest cost.
- Brand image recognition.
How do you identify a competitive advantage?
To find a lasting competitive advantage, look for something that your competitors cannot easily replicate or imitate. Competitive advantages can be found almost anywhere. Some restaurants thrive because of their location.
What is competitive advantage in a business plan?
A competitive advantage is strategic development where customers will choose a firm’s product or service over its competitors based on significantly more favorable perceptions or offerings. For more on analyzing your competition, check out: How to Write the Competition Section of Your Business Plan.
How do you write a competitive advantage?
Crafting Your Statement Your statement of competitive advantage has four components: your name, your company, a statement about a problem in your market, and how you and your product solve that problem. Essentially, it is a 30-second statement explaining what differentiates your company in the marketplace.
How do you create a competitive advantage?
6 Ways to Gain Competitive Advantage
- Create a Corporate Culture that Attracts the Best Talent.
- Define Niches that are Under-serviced.
- Understand the DNA Footprint of Your Ideal Customer.
- Clarify Your Strengths.
- Establish Your Unique Value Proposition.
- Reward Behaviors that Support Corporate Mission and Value.
What are the 3 basic competitive strategies?
Michael Porter defines three strategy types that can attain a competitive advantage. These strategies are cost leadership, differentiation, and market segmentation (or focus). Cost leadership is about achieving scale economies and utilizing them to produce high volume at a low cost.
What is competitive advantage model?
A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.
How do you write a competitive advantage in a business plan?
Business plan tips: how to identify your competitive advantage
- Identify your competitors. Start by making a list of your direct and indirect competitors.
- Find their strengths and weaknesses. Identify what your competitors are doing right.
- Figure out your “special ingredient”