Competition in the Marketplace Term Paper by scribbler

Competition in the Marketplace
A discussion on the concepts of price, competition and monopoly.
# 152761 | 1,944 words | 14 sources | APA | 2013 | US
Published on Apr 26, 2013 in Economics (General)


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Description:

The paper provides an overview of Adam Smith's economic theory and then explains the concepts of competition, monopoly and price. The paper looks at the De Beers diamond company as a contemporary example of a monopoly and also discusses luxury goods, specifically, luxury watches, as an illustration of monopolistic competition. Finally, the paper discusses the Organization of the Petroleum Exporting Countries (OPEC) cartel as a modern oligopoly.

Outline:
Overview
Background - Economics of the Market
Contemporary Examples- De Beers as a Monopoly
Luxury Watches - Monopolistic Competition
OPEC - A Modern Oligopoly

From the Paper:

"Smith's notion of labor, bringing a product to market, establishing trade, and delineation of labor forms modern capitalism. Part of modern capitalism is, of course, the idea that there is competition in the marketplace. Within any economic system, there are a number of different types of agreements and templates that may be implemented. Some, of course, are legal and encouraged, others illegal and discouraged. For example, in a given marketplace there are ways industries and businesses can approach business competition. Collusion is an agreement that occurs between two entities to limit open competition by deceit or fraud. Within that same market, if one business or entity dominates the market, a monopoly is reached. This monopoly can be geographic (structured based on geographic criteria - easier to produce and ship to a given area); a natural monopoly (a firm experiencing increasing returns due to scale relevant to output; technological (technology creates barriers to entry)or even coercive (e.g. a cartel in which the maintenance of the monopoly is done through force) (Schenk, 2010).
"The purpose of a monopoly is to define and regulate market competition. In economics, imperfect competition is a situation in a given market where the conditions for perfect competition (equal market power) do not exist. A monopoly implies one major seller of a good or service; oligopoly a small number of sellers, monopolistic competition in which there are numerous sellers producing very differentiated materials."

Sample of Sources Used:

  • Falola, T. (2008). The Politics of the Global Oil Industry. New York: Praeger.
  • Hart, M. (2002). Diamond: The Hitory of a Cold-Blooded Love Affair. New York: Plume.
  • Friedman, D. (1990). Price Theory. DavidFriedman.com. Cited in:http://www.daviddfriedman.com/Academic/Price_Theory/PThy_ToC.html
  • Is OPEC About to Lose Control of the Spigot? (January 20, 2003). Bloomberg Businessweek.Cited in: http://www.businessweek.com/magazine/content/03_03/b3816074.htm
  • Katempopolous, M. (2010). About Invicta Watches. EHow.com. Cited in:http://www.ehow.com/about_5118452_invicta-watches.html

Cite this Term Paper:

APA Format

Competition in the Marketplace (2013, April 26) Retrieved November 29, 2020, from https://www.academon.com/term-paper/competition-in-the-marketplace-152761/

MLA Format

"Competition in the Marketplace" 26 April 2013. Web. 29 November. 2020. <https://www.academon.com/term-paper/competition-in-the-marketplace-152761/>

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