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Differentiating Between Market
Structures
ECO/365
OCTOBER 19, 2015

Differentiating Between Market
Structures


Competitive balance between market structures distinctive in each industry. The characteristics of a market will give you an idea of as to the type of market you are working with. For this PowerPoint slide
I will be focusing on Jacobs Engineering
Group. The company operates in a variety of industries mainly focused on the technical service industry.

Pa ge 2

Market Structure


The market structure can be defined by the number of firms; negotiation strengths in terms of ability to set price; the amount of concentration among them; the amount of differentiation and individual products; and the ease or difficulty of entering and exiting the market.

Pa ge 3

Oligopoly Characteristics


In Oligopoly you would find only a small number of sellers that is few enough that any individual can affect the market. 

Ability to set own prices

Pa ge 4

Jacobs Engineering
Group


Jacobs Engineering Group is one of only a few firms that dominate their industry.
This means that it cannot be a Monopoly because there are multiple firms and it cannot be perfect competition because there are few companies competing.
Monopolistic Competition is also ruled out because there aren't many firms competing with similar products/services.

Pa ge 5

Strategic Decision Making



Strategic Decision Making Taking explicit account of a rival’s expected response to a decision you are making.”
(Colander, 2013)

Pa ge 6

Competitive Strategies


In oligopoly, a price competition can turn into a price conflict reducing profits. If one firm decides to increase it’s price, the other firms may not follow and in turn the other firms will gain the customers. The firm that raised prices will

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