Evaluation and Opinion on Oligopoly Essay Example | Topics and Well Written Essays - 750 words

Evaluation and Opinion on Oligopoly - Essay Example The new oligopoly is made up of multinational corporations that have chosen specific product or service categories to dominate. In each category, over time, only two to four major players prosper. Starting a new company in thatmarket segmentis difficult, and the few that do succeed are often gobbled up or run out of business by the oligopolies. (Oligopoly, 2006a) Strategic Interaction: when only a few firms operate in a market, they will soon recognize their interdependence. Strategic Interaction, which is genuinely a new feature of oligopoly, occurs when each firm's business plans depend upon the behavior of its rivals. Analyzation reveals that economists are particularly concerned about industries characterized by imperfect competition. One reason is that such industries behave in certain ways that are unfavorable to the public interest. For example imperfect competition generally leads to prices that are above marginal costs; this results in an inefficient allocation of resources. The result of such high prices leads oligopolistic industries towards supernormal profits. However in depth studies shows concentrated industries having only slight higher rates of profit than unconcentrated ones. (Nordhaus, 1998, p. 171) The distinguishing characteristic of oligopoly is the interdependence among firms in the industry. Since an oligopolist knows that its own actions will have a significant impact on the other oligopolists in the industry, each oligopolist must consider the possible reaction of competitors in deciding its pricing policies, the degree of product differentiation to introduce, the level of advertising to undertake, the amount of service to provide etc. Since competitors can react in many ways, therefore we possess several oligopoly models based on the particular behavioral response of competitors to the actions of the first. Because of this interdependence, managerial decision-making is much more complex under oligopoly than under other forms of market structure. (Salvatore, 2001, p. 427) The following are the sources of oligopoly, which represent the barriers to other firms entering in the market in the long run: Economies of scale may operate over a sufficiently large range of outputs as to leave only a few firms supplying the entire market. Huge capital investments and supplying inputs are usually required to enter an oligopolistic industry and this acts as an important natural barrier to entry. A few firms may own a patent for the exclusive right to produce a commodity or to use a particular production process. Established firms may have a loyal following of customers based on product quality and service that new firms would find very difficult to match. A few firms may own or control the entire supply of a raw material required in the production of a product. A

Health Science and Medicine and CDC Coursework Example | Topics and Well Written Essays - 250 words

Health Science and Medicine and CDC - Coursework Example According to the study  the chain management said that they are tracking the handling of their ingredients from the farmer to the restaurant to ensure all standards were followed and improved. The cases of microbial contamination of food are out of control and can be scary hence individuals are advised to cautious. One way of protecting oneself from this situation is through consuming home cooked foods and avoiding manufactured or packaged food.This research highlights that ninety-four percent of soybeans and seventy-two percent of corn grown in the country are genetically engineered. This is done for them to be able to withstand Monsanto’s Roundup herbicide or glyphosate. A study done in 2008 established a link between Roundup and non-Hodgkin’s lymphoma. An early study made a connection between high rates of DNA damage in populations that had been aerially sprayed. This shows there is a valid reason for concern about GMO foods and the health impacts. Further environm ental concerns have also been raised. On is that, because a majority of GMO crops are engineered to withstand certain types of herbicides, targeted weeds are becoming highly resistant to the herbicides. This means that more of the toxic chemicals have to be used to fight them. Based on the amount evidence presented, environmental concerns seem to be more valid but this is not to say health concerns should be ignored.