Business environment Essay Example | Topics and Well Written Essays - 3250 words

Business environment - Essay ExampleThe following graph shows the example of perfect competitionMonopoly Monopoly is totally opposite to perfect competition. In perfect monopoly, only one manufacturer or supplier exists but in reality, much(prenominal) demeanor of market hardly exists because in such an travel arena there must be a substitute of each product. There is a dominance of one incorruptible on overall market, such firm can influence prices, lack of substitute, very high barriers to entry (Wilkinson, 2005). Example of such market structure can be a blood company in India, electricity supplier in many countries including Pakistan, and British Telecom. The following graph represents the monopoly marketMonopsony In monopsony, firms acquitthe power to employee factors of production and each firm employee a miniature amount of employees in order to influence the rate of wages. In such market, only one buyer of a particular sort of laborexists. Firms are wage makers because l abor has fewer options (McConnell, 2012). Due to the highest negociate power, firms have lower manufacturing cost and, therefore, largest profit margin.Example of such firms is the electricity generator because it can talk terms a lower price of gas and coal supply contract. Low cost airline gets favorable price for new fleet, food retailers use their bargaining power when purchase items from milk producer, farmer, and other dealers. The following graph shows the example of monopsony market.Oligopoly In oligopoly, competition exists between few firms. May the industry have the largest mo of firms howeverfew larger firms dominate the overall industry. Firms are liable to manufacture or supply differentiated or standardized products, such firms have to face high entry barriers, have medium power to affect the market price (Wilkinson, 2005). Example of oligopolistic market is the sports apparel industry. Multiple manufacturers exist in sports apparel industry, but some majors like Ad idas, Puma, and Nike are dominating the overall