Any Economists'/Econ Gurus?
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From: Dirty Dena
Again yes. A counter argument to his premise that dealerships may offer different incentives is purely simple competition. Target and Walmart both sell dog food, however, one may purchase dog food from Walmart for $.50 off with a coupon. Thats what competition is, right?
Joined: Mar 2008
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From: Atlanta, Ga
Don't take my word for it, but I think that's a trick question: in the free market economy, there isn't a niche with perfect competition... but like I said, PLEASE ask around and don't just take my word for it!!
DISCLAIMER: the author of this post is in no way, shape, or form liable for any deduction in points due to misinformation.
DISCLAIMER: the author of this post is in no way, shape, or form liable for any deduction in points due to misinformation.
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From: Yorba Linda, CA
New car dealerships engage in something between monopolistic competition and oligopoly, for reasons outlined above.
Did anyone give an example of a purely competitive market that your professor accepted?
Did anyone give an example of a purely competitive market that your professor accepted?
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From: never never land
Car dealerships are Oligopolies.
"An oligopoly is a market form in which a market or industry is dominated by a small number of sellers (oligopolists). The word is derived from the Greek for few (entities with the right to) sell. Because there are few participants in this type of market, each oligopolist is aware of the actions of the others. The decisions of one firm influence, and are influenced by the decisions of other firms. Strategic planning by oligopolists always involves taking into account the likely responses of the other market participants. This causes oligopolistic markets and industries to be at the highest risk for collusion."
"An oligopoly is a market form in which a market or industry is dominated by a small number of sellers (oligopolists). The word is derived from the Greek for few (entities with the right to) sell. Because there are few participants in this type of market, each oligopolist is aware of the actions of the others. The decisions of one firm influence, and are influenced by the decisions of other firms. Strategic planning by oligopolists always involves taking into account the likely responses of the other market participants. This causes oligopolistic markets and industries to be at the highest risk for collusion."
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From: Phoenix, AZ
Let me know if I am wrong here but outside of security and commodity trading there is no such thing as a purely competitive market. It is just another one of those economic theories taught in school that doesn't apply to real life.
Another BS economic theory: Purchasing Power of Parity
Edit: Didn't take into account traders with huge amounts of capital (I-banks) when saying security and commodity trading.
Another BS economic theory: Purchasing Power of Parity
Edit: Didn't take into account traders with huge amounts of capital (I-banks) when saying security and commodity trading.
Joined: Jul 2004
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From: Phoenix, AZ
Originally Posted by GPMike,Oct 22 2008, 10:16 PM
Hence, when you graduate with an undergraduate degree in econ...its B.S. 
But on a serious note....OP if you are taking econ as your major its a great foundation for going to law school, or once you work for a few years...then to pursue your MBA. I loved econ....it was a real Laffer!!! (bad pun
)
But on a serious note....OP if you are taking econ as your major its a great foundation for going to law school, or once you work for a few years...then to pursue your MBA. I loved econ....it was a real Laffer!!! (bad pun
)