Submitted specificity of consumers, the specifics of competition. In

Submitted to   Submitted by42206(single diploma) – Amal YusupovTable of contentEach branch has its own marketspecificity – the production of various goods, a different composition ofproducers, the size of enterprises, the features of technology, the compositionand specificity of consumers, the specifics of competition.In microeconomics, the mosttypical market structures (market models) are generalized and the behavior ofmanufacturing firms is studied, leading to the receipt of the greatest benefitsfor them-the receipt of the maximum profit. At the heart of these generalizations,specific recommendations are developed that have important applied importancein the choice of the company’s behavior strategy in specific market conditions.The object of the analysis ofcompetition is the branch. For example, a group of competitors producing goods(services) and directly competing with each other.

The purpose of the analysisis to identify the competitive advantages of the firm and the choice of acompetition strategy.There are four main .market structures: .perfect competition, .monopolisticcompetition, .

Best services for writing your paper according to Trustpilot

Premium Partner
From $18.00 per page
4,8 / 5
4,80
Writers Experience
4,80
Delivery
4,90
Support
4,70
Price
Recommended Service
From $13.90 per page
4,6 / 5
4,70
Writers Experience
4,70
Delivery
4,60
Support
4,60
Price
From $20.00 per page
4,5 / 5
4,80
Writers Experience
4,50
Delivery
4,40
Support
4,10
Price
* All Partners were chosen among 50+ writing services by our Customer Satisfaction Team

oligopoly and .monopoly..Perfect .competition indicates a .

.market .structure, in which a plentynumber of small firms compete against each other. Moreover, companies do not havea significant influence on power of market. Consequently, the manufacture generallyproduces the absolute l level of production, which in turn lead to markethas many buyers and sellers trading identical products so that each buyer andseller is a /price taker.

.Perfect competition relies onthe following elements:·       All .smallfirms are focused to maximize profits.·       The goods offered by the various sellers are largely the same.·       There are not specific preferences between different sellers. It doesnot matter for the customer from which firms buy the products.·       All firms have free access and exit to the market.

·       There is perfect information and knowledge about homogenous products.At present, according to Nelsonstatistics, 3885567619 out of the global population 7519028970 people use theinternet. Approximately 3.9 billion internet users are both producers andconsumers. The above mentioned example indicates that the internet is a market,where a myriads number of consumers/producers operate without any influence onmarket power which in turn lead to equal opportunities in this market,exemplifying one of the features of perfect competition.

     Example ofperfect competition.          .Internet related industries.The internet has a strong influence on perfect competition market due to thefact that the internet has made the way of comparison and check prices easily,quickly and efficiently (perfect information). Consequently, selling any kindsof good on the internet through a service such as Alibaba, Aliexpress and E-bayis extremely similar to perfect competition. For instance, it is becoming moreand more popular to use the above mentioned online magazines to compare pricesof any types of product and buy cheaper ones.

Like perfect competition onlinemagazines namely Alibaba, Aliexpress and E-bay relies on the following elements:·       .There also a large number of sellers.·       .Perfect information and knowledge. It is easy to compare the prices of goods.·       .

There are no significant barriers to entry and to exit to the market. .Monopolistic competition is atype of market structure consisting of many small companies that producedifferentiated products and free entry to the market and exit from the market.The products of these firms are close, but not completely interchangeable, itmeans that there is a difference in price, features, branding and marketing.Bydifferentiating the product, the monopolistic competitor reduces priceelasticity. Raising the price, the monopolistic competitor is not deprived ofall consumers, as it happens in the conditions of perfect competition. Themarket is somewhat narrowed, but there remain those who steadily prefer theproducts of only this manufacturer.

 .Monopolistic competition relieson the following elements:·       availability of many sellers and buyers (the market consists of a largenumber of independent firms and buyers);·       free access to and exit from the market (no barriers that keep new firmsfrom entering the market leaving the market);·       Differentiated, .differentiated products offered by competing firms.

Moreover, productsmay differ from one another in one or a number of properties (for example, inchemical composition);·       perfect awareness of sellers and buyers about market conditions;·       influence on the price level, but in a rather narrow framework Exampleof monopolistic competition:Oneof the most convenient example for the monopolistic competition is washingpowder.Thereare quite a few different companies in Poland such as, Ariel, Tide, Ares,Perwoll, Lenor, Vizir, Perlux, Maxi trat, FF, Persil, Losk, Surf, Bio Power,Origami and so forth. Asa result, forthe production of new varieties of detergent powders it is not required tocreate a large enterprise. Therefore, if firms producing powders will receivelarge economic profits, this will lead to the inflow of new firms into theindustry. New firms will offer consumers washing powder of new brands,sometimes not much different from those already produced (in a new package,another color or designed for washing different types of fabrics).   T