I will pay for the following essay Micro/Macro Economics. The essay is to be 2 pages with three to five sources, with in-text citations and a reference page.
f its product through superior quality, reliability, and distinctive services that others are unable to match, combined with massive and sustained promotions and advertising efforts. Nike grabbed a big slice of the market owing to its sustained “Just do it” ads at the expense of Reebok and many others.
IBM also built its brand value through its reputation for quality and after-sales service for many years before others such as Dell Computer and Hewlett Packard found a way to make a dent on its competitive advantage. Coca Cola is nothing but sweetened flavored water without the brand value it has carefully built and nurtured through many years.
Another way for a firm to achieve some sort of monopoly power is by developing efficient mass-production or lean-production methods that result in cost efficiencies and therefore reduced production costs. Because of such economies of scale, the firm can then charge lower prices that its competitors cannot match or undercut.
In the context of the competitive business environment in the United States, open collusion among firms in an oligopoly would result in lawsuits and a strong possibility of damages or fines having to be paid. Subtle forms of (or tacit) collusion is however possible – primarily through price leadership. One firm, usually the biggest in the industry, increases its price. Under normal circumstances, that firm would lose business as buyers would avoid its high-price product or service, and give their business to those whose prices remain the same. With price leadership, the others follow by charging the same price as the price leader, and thus cause the public to suffer from the monopoly profits that these firm earn. The firms may also increase their prices with only slight variations (a few cents, say) from that of the price leader and thus avoid public suspicion or investigation by regulatory authorities.
Because the demand curve of a monopoly is negatively (downward) sloping, the output or quantity