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Business Market Forms

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An oligopoly market structure has very few sellers of homogeneous or differentiated products; these types of market structures control the market via price, and have to consider the reactions of their competitors when handling their own pricing, output, and advertising decisions (McConnell, Brue, & Flynn, 2015, b). In addition, oligopoly market structures have significant obstacles, and have limited interdependence. Some examples of oligopoly market businesses includes: CMC Steel of Texas, Gerdau Long Steel North America, GE, Whirlpool, Hyundai, Toyota, John Deere, and KD Sales. All of which are the largest manufacturers of homogeneous and differentiated products. Therefore, functioning and maximizing profits are critical to the success of their business. The strategies design by the company is extremely important because with limited interdependence means they cannot act independently. All firms must be on constant watch and must anticipate their rival’s responses to any given change in prices or non-price activities (Market Structure, 2006; McConnell, Brue, & Flynn, 2015, b). Therefore, it is easy to say that these types of businesses need to plan, develop and integrate a variety of options based on how their competitors might or might not react to their decisions.
Each critical decision must be factored around the competition’s price, mover advantages, barriers, production, and ownership of resources (Market Structure, 2006). In order to maximize profits and function properly oligopoly market structures depends heavily on their pricing strategies. For example, firms can devise plans around three different approaches: increase prices, lower prices, or keep the price at a constant; the choice of the business depends on their skills or expertise of the market, the pay-offs, their competitor’s actions, and the risks the companies are willing to take to

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