Business Competition
Muhtasari
Walk down any high street and you will see two very different kinds of business: a corner shop selling almost identical bread and milk to twenty rivals within walking distance, and a single national water company that every household in the region must buy from because there is no alternative supplier. Both are real market structures, and the amount of competition each firm faces changes almost everything about how it behaves.
In this lesson you will travel along the spectrum of market structures from highly competitive markets to monopoly, examine why some firms grow large while others deliberately stay small, and unpack the barriers that keep monopolies and oligopolies protected from new rivals. You will finish able to judge, for a given market, whether more competition or more concentration serves consumers better.
Malengo
- Advantages and disadvantages of competition to firms, consumers and the economy, including efficiency, choice, quality, innovation, price
- Advantages and disadvantages of large firms and small firms
- Factors influencing the growth of firms: government regulation, access to finance, economies of scale, the desire to spread risk, the desire to take over competitors
- Reasons firms stay small: size of market, nature of market (niche), lack of finance, aims of the entrepreneur
- Definition of monopoly
- Main features of monopoly: one business dominates the market, unique product, price-maker, barriers to entry (legal barriers, patents, marketing budgets, technology, high start-up costs)
- Advantages and disadvantages of monopoly: efficiency, choice, quality, innovation, price, economies of scale
- Definition of oligopoly
- Main features of oligopoly: few firms, large firms dominate, different products, barriers to entry, collusion, non-price competition, price competition
- Advantages and disadvantages of oligopoly: choice, quality, innovation, collusion and cartels fixing high prices, price wars between oligopolies
Maelezo ya Somo
Inapatikana kwenye programu ya Green Bridge
Pakua programu ya Green Bridge CBT kwenye simu yako au kompyuta yako ili kupata maelezo kamili ya masomo, maswali ya mazoezi, na mengi zaidi.
Tathmini ya Somo
Hongera kwa kukamilisha somo la Business Competition. Sasa kwa kuwa umechunguza dhana na mawazo muhimu, ni wakati wa kuweka ujuzi wako kwa mtihani. Sehemu hii inatoa mazoezi mbalimbali maswali yaliyoundwa ili kuimarisha uelewaji wako na kukusaidia kupima ufahamu wako wa nyenzo.
Utakutana na mchanganyiko wa aina mbalimbali za maswali, ikiwemo maswali ya kuchagua jibu sahihi, maswali ya majibu mafupi, na maswali ya insha. Kila swali limebuniwa kwa umakini ili kupima vipengele tofauti vya maarifa yako na ujuzi wa kufikiri kwa makini.
Tumia sehemu hii ya tathmini kama fursa ya kuimarisha uelewa wako wa mada na kubaini maeneo yoyote ambapo unaweza kuhitaji kusoma zaidi. Usikatishwe tamaa na changamoto zozote utakazokutana nazo; badala yake, zitazame kama fursa za kukua na kuboresha.
- Which market structure is characterised by many small firms selling an identical product, none able to influence the market price? A) Monopoly B) Oligopoly C) Perfect competition D) Natural monopoly Answer: C
- Which of the following is a barrier to entry? A) Falling consumer demand B) A patent protecting a product design C) A fall in raw material prices D) An increase in the number of suppliers Answer: B
- A market is dominated by four large firms who compete mainly through advertising and loyalty schemes rather than price. This best describes: A) Perfect competition B) Monopoly C) Oligopoly D) A niche market Answer: C
- Which of the following best explains why a monopolist can act as a price-maker? A) It has lower costs than every other firm B) Consumers have no close substitute to switch to C) It always sells at the lowest possible price D) Government sets its price directly Answer: B
- Which of the following is most likely to encourage a small firm to remain small rather than grow? A) Easy access to bank finance B) Operating in a niche market with limited total demand C) Strong economies of scale D) A government subsidy for expansion Answer: B
Inapatikana kwenye programu ya Green Bridge
Pakua programu ya Green Bridge CBT kwenye simu yako au kompyuta yako ili kupata maelezo kamili ya masomo, maswali ya mazoezi, na mengi zaidi.
Inapatikana kwenye programu ya Green Bridge
Pakua programu ya Green Bridge CBT kwenye simu yako au kompyuta yako ili kupata maelezo kamili ya masomo, maswali ya mazoezi, na mengi zaidi.
Vitabu Vinavyopendekezwa
Fanya Mazoezi ya Maswali ya Majaribio
Ungependa kufanya mazoezi ya maswali ya majaribio kuhusu Business Competition? Pakua programu ya Green Bridge CBT ili kupata maswali ya majaribio na tathmini kamili za mazoezi kuhusu mada hii.
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