Differentiating Between Market Structures Essay - 1260 Words

Differentiating Between Market Structures Yvonne C Rivera ECO/365 May 16, 2013 Paul de la Pena Abstract There are many TV service providers available in the U.S; however there are only two companies that offer services via satellite. Dish operates within the monopolistic competition market. Dish has been in business since the early 1980’s and has gradually worked its way up to become one of the leading satellite provider and innovator of new technology. In 2013 they offer service to over 14 million subscribers nationwide. This market in which it competes is where all firms have some market power, which controls the market price. They produce the same product as Direct TV and no other provider is in the same market. They know all†¦show more content†¦These two companies offer similar products and customers can choose whom they do service with. It is ideal for Dish to compete in this market because there are only two companies within the same industry. This market structure is suitable for Dish because it provides more opportunity to maximize profit due to the competition . Dish has more availability to customers and the opportunity to be able to increase customer rate in turn increasing the profit due to the fact that there are only two service providers. It cannot be in a monopoly market because there is another company that provides the same service or product. It also does not have extremely high prices or excessive barriers to obtain services. They always provide affordable prices that will also benefit the company to increase profit. (Monopolistic Competition, 2013). Dish has many promotions that are being offered to obtain new customers and also retain the existing consumers. The company offers upfront discounts as a sign up bonus to gain the attention of those prospective consumers. It offers up to $30 credits up front on the programming for the first twelve months of service. With a qualifying promotion the customer will have the activation and the equipment fees waived saving the consumer over $200. When existing customers look for any type of promotion they will have anything from discounts for a few months up to free programming. Even if the customers receiveShow MoreRelatedDifferentiating Between Market Structures1766 Words   |  8 PagesDifferentiating between Market Structures Jessika Canales Dà ­az ECO /365 08/28/2010 Instructor: SR. Carlos Mà ©ndez David Differentiating between Market Structures In this simulation, the learner studies the cost and revenue curves in different market structures perfect competition, monopoly, monopolistic competition, or oligopoly faced by a freight transportation company, and makes decisions to maximize profits or to minimize losses. 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Wal-Mart’s market structure is typical of most of our nation’s largest corporations in that they are an oligopoly (BrownRead MoreDifferentiating Between Market Structures in Kudler1022 Words   |  5 PagesDifferentiating Between Market Structures in Kudler ECO365 â€Å"Kudler Fine Foods was established in 1998 when Kathy Kudler fulfilled her vision of establishing her own gourmet food store. The La Jolla store continues to grow while the Del Mar store has been having some difficulties. The store in Encinitas has just opened, but sales seem brisk.† (Apollo, 2011, Strategic Plan, p. 3) The owner works 7 days a week and performs many jobs from purchasing to stocking shelves. Kudler Fine Foods sees