Tut #22.4 Essay Q3 Outline by Janise Phang https://padlet.com/janisephang/89rb4uh081jr TYS N2015 en-us 2017-07-17 00:32:05 UTC 2026-01-17 17:12:18 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/Growing.png 'Market dominance is the main factor determining the profitability of firms.' janisephang https://padlet.com/janisephang/89rb4uh081jr/wish/178811181 (a) Explain how market dominance can influence a firm's price and output decisions. [10]
(b) Discuss whether government intervention is always needed when a firm dominates the market. [15]]]> 2017-07-17 00:32:05 UTC https://padlet.com/janisephang/89rb4uh081jr/wish/178811181 Market Dominance janisephang https://padlet.com/janisephang/89rb4uh081jr/wish/178811182 What is market dominance?
Market dominance occurs when a firm has strong barriers to entry and/or there is imperfect knowledge in the market. The product sold is supplied by a single or few large sellers. As a result the sellers have substantial market share or control over supply and the market price. 
Market dominance is often seen in a monopoly where it is the sole producer of the product with no close substitutes. 
]]> 2017-07-17 00:32:05 UTC https://padlet.com/janisephang/89rb4uh081jr/wish/178811182 (a) Question Dissection janisephang https://padlet.com/janisephang/89rb4uh081jr/wish/178811183 Identify 3Cs
1. Command: Explain
2. Concept: market dominance; price and output decisions 
3. Context: NIL]]> 2017-07-17 00:32:05 UTC https://padlet.com/janisephang/89rb4uh081jr/wish/178811183 Price & Output Decisions janisephang https://padlet.com/janisephang/89rb4uh081jr/wish/178811184 How are price and output determined?
We assume that all firms aim to maximise profits, hence they will produce at the output where MC=MR.

]]> 2017-07-17 00:32:05 UTC https://padlet.com/janisephang/89rb4uh081jr/wish/178811184 How does market dominance affect price & output decisions? janisephang https://padlet.com/janisephang/89rb4uh081jr/wish/178811185 A firm with market dominance faces a downward sloping demand curve. It can lower prices in order to sell more output or restrict output and sell at higher price. ]]> 2017-07-17 00:32:05 UTC https://padlet.com/janisephang/89rb4uh081jr/wish/178811185 Diagram/s? janisephang https://padlet.com/janisephang/89rb4uh081jr/wish/178811186 2017-07-17 00:32:05 UTC https://padlet.com/janisephang/89rb4uh081jr/wish/178811186 'Market dominance is the main factor determining the profitability of firms.' janisephang https://padlet.com/janisephang/89rb4uh081jr/wish/178811187 (a) Explain how market dominance can influence a firm's price and output decisions. [10]
(b) Discuss whether government intervention is always needed when a firm dominates the market. [15]]]> 2017-07-17 00:32:05 UTC https://padlet.com/janisephang/89rb4uh081jr/wish/178811187 (b) Question Dissection janisephang https://padlet.com/janisephang/89rb4uh081jr/wish/178811188 Identify 3Cs
1. Command: Discuss whether
2. Concept: a firm dominates the market --> market dominance
3. Context: NIL
4. Condition: always necessary]]> 2017-07-17 00:32:05 UTC https://padlet.com/janisephang/89rb4uh081jr/wish/178811188 Why is government intervention needed when a firm dominates the market? janisephang https://padlet.com/janisephang/89rb4uh081jr/wish/178811189 2017-07-17 00:32:05 UTC https://padlet.com/janisephang/89rb4uh081jr/wish/178811189 What are the forms of government intervention? janisephang https://padlet.com/janisephang/89rb4uh081jr/wish/178811190 2017-07-17 00:32:05 UTC https://padlet.com/janisephang/89rb4uh081jr/wish/178811190 Are they always necessary? janisephang https://padlet.com/janisephang/89rb4uh081jr/wish/178811191 2017-07-17 00:32:05 UTC https://padlet.com/janisephang/89rb4uh081jr/wish/178811191 To address this question.... janisephang https://padlet.com/janisephang/89rb4uh081jr/wish/178812265 We need to compare the price & output of a price setter (i.e. firm with market dominance) and price taker (i.e. firm with no market dominance).
Monopolist vs. Perfectly Competitive Firm]]> 2017-07-17 00:48:33 UTC https://padlet.com/janisephang/89rb4uh081jr/wish/178812265