formal collusion; cartels are group of competitive firms colluding together to act as a monopoly - why is a monopoly market structure attractive to producers?
High oil prices are crushing families across Britain. Motorists are being taken for a very expensive ride.''
what would the evaluation contain?
- is it good or bad? (for consumers (benefits of colluding) and producers)
- BP oil competition = shows how having contest ability may be dangerous
- what can the governments do to stop collusion from happening?
formal collusion; cartels are group of competitive firms colluding together to act as a monopoly - why is a monopoly market structure attractive to producers?
EVALUATION:
what would the evaluation contain?
- is it good or bad? (for consumers (benefits of colluding) and producers)
- BP oil competition = shows how having contest ability may be dangerous
- what can the governments do to stop collusion from happening?
Panasonic (oligopolistic firm) is considering to cut workers due to recession, so microeconomics on oligopoly with the x-axis with quantity and y-axis with price can be made.
I assume this section is saying that they are trying to reduce costs of production and increase efficiency. However, in most cases if a firm tries to lower the price they would lose customers due to price war between other firms that produce homogenous goods so it would be risky to change prices when its oligopoly. Although, their main aim is to recover its business so they are trying to cut many workers, reduce costs and increase efficiency.
recovery of its business performance at an early date by speeding up decision-making, in addition to cost cuts after logging a massive group net loss in the business year
I assume that "new growth areas" is to move the company to a more rural area because having a business at a city has a high land cost where rural areas can be much cheaper therefore, this can benefit the firm by having the cost curves to shift outward.
One of the factors of production, capital by having new technology such as (mentions here) solar panels. It reduces the light energy use, etc costs in the company.
Note that maximum price level existed previously, but at a lower level.
As per the new price control order, the ceiling price of an essential drug will be the simple average of all brands with a market share of at least one per cent.
Creating cartels to increase the price together - Oligopoly, few large firms dominating the market.
The experts in the industry point out that the small players in the field will eventually be wiped out when the new price control regime will come into effect.
Evaluation - Assumption made that the large firms are going to form cartels. If they don't, this will not occur.
For the government to prevent this, they can create anti-cartel regulations
Hershey Canada, an alleged co-conspirator, is expected to plead guilty at a hearing later this month in exchange for leniency.
Three individuals have also been charged as part of the investigation.
Mars, Nestle and ATWAL vowed to fight the charges
"It is Mars Canada's policy not to comment on pending litigation and we are therefore unable to make any additional comments in relation to this matter, which is now before the court.