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Essay

Pricewars

Essay specific features

 

Issue:

Business

 

Written by:

Bobby W

 

Date added:

March 17, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 671

 

Was viewed:

7042 times

 

Rating of current essay:

 
Essay content:

Barriers to entry and exit are also likely to exist. In oligopoly markets there is product differentiation, the extent of which depends on the type of product produced. This leads to interdependency, as the actions of one large firm will directly affect another large firm. Therefore, firms are said to be operating under conditions of uncertainty because firms are unable to judge the future actions of their competitors and hence their own firm’s future...
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If the firm was to reduce prices, it could risk starting a price war. This is because, other firms are likely to follow, in order to stay competitive. Therefore, all firms in the industry would suffer from a sharp fall in profits as they continuously cut prices to compete with each other. Eventually, prices will have to rise again to restore profitability and the firm that started the price war could have lost market share...
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General issues of this essay:
Demand Analysis: Price Elasticty Forecasting Oil Price and Demand Price Elasticity of Demand Price Elasticity of Demand Price Elasticity of Demand Price elasticity of demand Price/Income Elasticity of Demand Supply, Demand, and Price Supply, Demand, and Price supply, demand, and price change Verizon Wireless - Price of Demand Product is form or function Supply Demand Price Supply, Demand and Price Examples of price inelastic
 

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