Premium Essay

Forms of Industrial Organziation

In: Business and Management

Submitted By Sarah1234
Words 1443
Pages 6
Forms of Industrial Organization
Economists group industries into four distinct market structures: monopoly, oligopoly, monopolistic competition, and competitive market. These four market models differ in several respects: the number of firms in the industry, whether those firms produce a standardized product or try to differentiate their products from those of other firms, and how easy or how difficult it is for firms to enter the industry (McConnell & Brue, 2004). This paper further defines each market structure and provides an example of a company representing each market structure.
Monopoly
A monopoly exists when a specific individual or an enterprise has sufficient control over a particular product or service to determine significantly the terms on which other individuals shall have access to it, and what pricing can be charged for it. A great example of a monopoly was the company Standard Oil, which existed roughly from 1895 to 1911. Standard Oil grew by acquiring its competitors and forming secret agreements with railroad transport to allow them to undercut competitors. Because Standard Oil was able to sell its product cheaper than its competitors, consumers continued to purchase Standard Oil product, forcing the other companies to either go out of business or sell out to Standard Oil while there was still some value in the company. Marketshare soared and Standard Oil gained the ability to set what pricing it wanted on its product because other competitors simply did not exist or did not have the distribution penetration of Standard Oil. In 1909 the government stepped with the Sherman Anti-Trist Act and broke up Standard Oil into several well known companies that still exist today, including Chevron, Amoco, BP, Exxon Conoco and Philips. Oligopoly “An oligopoly is a market dominated by a few large suppliers. The degree

Similar Documents

Premium Essay

Research Method

...A Study on “COMPETENCY MAPPING” (TITAN INDUSTRIES LTD., HOSUR) Prepared by RICHA JAUHARI Registration No: 11010121094 Under the Guidance of Dr Debashish Sengupta Prepared by RICHA JAUHARI Registration No: 11010121094 Under the Guidance of Dr Debashish Sengupta In partial fulfillment of the Course-Industry Internship Programme (IIP) in Semester II of the Master of Business Administration (July 2011-13) Industry Internship Programme (IIP) Declaration This is to declare that the Report titled “COMPETECNY MAPPING” has been made for the partial fulfillment of the Course: Industry Internship Programme (IIP) in Semester II (July 2011-13) by me at TITAN WATCH DIVISION,HOSUR under the guidance of Dr. DEBASHISH SENGUPTA . I confirm that this Report truly represents my work undertaken as a part of my Industry Internship Programme (IIP). This work is not a replication of work done previously by any other person. I also confirm that the contents of the report and the views contained therein have been discussed and deliberated with the faculty guide. Signature of the Student : Name of the Student (in Capital Letters) : RICHA JAUHARI Registration No : 11010121094 Master of Business Administration Certificate This is to certify that Mr. / Ms. ’Richa Jauhari’ Regn. No. 11010121094 have completed the report titled...

Words: 3947 - Pages: 16