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TYPES OF COMPETITION Introduction to Business 2/2009
MARKET STRUCTURE ,[object Object],[object Object],[object Object],[object Object]
PERFECT
PERFECT
MONOPOLISTIC
MONOPOLISTIC
OLIGOPOLY
OLIGOPOLY
MONOPOLY
MONOPOLY A monopoly is a company that dominates and controls a specific industry.
QUESTIONS & ANSWERS  From  Wal-Mart ‘s case study
  1. What industry Wal-Mart is competing in?  ,[object Object],[object Object]
2. Which market structure should Wal-Mart be considered?  ,[object Object],[object Object],[object Object],[object Object],[object Object],According to theory
Wal-Mart  might be considered as  “Oligopoly”   ,[object Object],In a world where most retailers are categorized as having a monopolistic competition market structure,  Wal-Mart Stores Inc. appears to have an oligopoly market structure .  Nevertheless,  because there are far too many retailers  to deal with, then  they also have a monopolistic competition market structure.  Regardless, Wal-Mart would rather have it this way  because it has not hurt them  at all by having competition.
3. Which determinant of demand/supply is affected causing change in demand/supply of products in the general merchandise industry? How? Explain and draw the diagram to illustrate the effect.  PRICE DETERMINANT
4. As the result of Wal-Mart’s action, which determinant of demand/supply is affected causing change in demand/supply of  superior products ? How? Explain and draw the diagram to illustrate the effect.
EXAMPLE OF EFFECTS from Wal-Mart to Superior Products Wal-Mart has squeezed suppliers till they scream, and forced them to move jobs abroad to keep cutting costs

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Introduction to Market Structures and Types of Competition