Market Structures: Monopoly, Oligopoly, and Competition
Market Structures: Monopoly, Oligopoly, and Monopolistic Competition
Monopoly
In a monopoly, a single provider controls the market and can determine prices. The company’s demand curve is the same as the market demand curve; to sell more, the company must reduce prices. Examples include RENFE (Spanish National Railway Network) and the postal service.
Causes of Monopolies:
- Control of a productive factor by one company.
- Dominance of essential raw material sources.
- Acquisition of a patent, creating a temporary
Understanding the Financial System: Key Concepts
What is the Financial System?
The financial system is a set of institutions, intermediaries, markets, and financial instruments. Its main objective is to channel savings from agents with financial surpluses to those with financial needs.
Elements of the Financial System
- Financial products (loans, shares)
- Financial markets (money markets, primary markets)
- Financial intermediaries (bankers, non-bankers)
What is a Financial Product?
Financial instruments are contracts that give rise to a financial asset in
Read MoreSAP S/4HANA Finance: Key Concepts & Features
| 500 | Standard Customizing setting | AUTOMATIC PAYMENT | Specify the payment request clearing account by company code. | CASH MANAGEMENT | The G/L account … To the bank account | CREDIT RISK | Online limit check | FIORI | Review Bank Accounts | FX | After you capture raw exposure data Before you conclude the hedging contract | HEDGING AREA | Company code | HEDGING RESERVE | Intrinsic Component | INTEREST RATES | In Customizing | MARKET | Bloomberg connector | NON-DELIVERABLE | Rate fixing | RISK ANALYZER | Exposure positions | S/4HANA | Ensuring sufficient funds to |
Transaction Cost Economics: Firms vs. Markets
Transaction Cost Theory
Coase’s work, further developed by Williamson, examines why firms exist. It posits that the firm is a resource allocation mechanism, an alternative to the market.
Primitive societies lacked coordination mechanisms to promote trade. The emergence of these mechanisms is linked to the increasing complexity of modern societies.
A specialized company produces many goods. However, the absence of self-sufficient agents forces companies to buy from others. It is necessary to produce
Read MoreMenzies & NAS Merger: Kotter’s 8 Steps for Success
Menzies & NAS Merger: Kotter’s 8 Steps for Success
- Action: Leaders at Menzies Aviation and NAS can emphasize the competitive landscape of the aviation services industry and the need to combine resources to capitalize on emerging opportunities and ensure long-term viability.
- Communication: Present data supporting the benefits of the merger, such as market access, increased service capabilities, and cost efficiencies.
2. Form a Powerful Coalition
- Action: Assemble a group of key
Hotel Revenue Management: Key Expenses Explained
Hotel Revenue Management: Understanding Key Expenses
- Room Sales
- Allowances: Revenue you stop earning.
Allowances are derived from revenue but deducted because the hotel stopped earning that revenue.
Why did the hotel stop earning that money? Often, it’s because the hotel spent more than budgeted due to:
Problems with service, incorrect charges, operational issues, or compensation for service failures.
Example: A guest arrives and the assigned room isn’t available. They are compensated with another room,
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