Differentiating Bewteen Market Structures Essay Example

Differentiating Bewteen Market Structures Essay There are different classifications of markets and the structure of a business determines which classification it will fall into. Markets are divided according to the composition of the business and what it provides to the specific market. Business composition is determined by the structure of market characteristics, and this helps determine level and area of competition.The characteristics in a market with the most concentration focus on number of purchasers and retailers, level in which a product has a substitute, price, entry and exit ease, and the level of mutual dependence. These structured variables are classified in the following market structures: perfectly competitive markets, monopolistically competitive markets, monopolies, and oligopolies (Colander, 2010). Trader Joe’s is a grocery store that offers upscale grocery fare such as; organic produce, nutritional supplements, and health foods.Trader Joe’s was founded by Joe Coulombe and started in 1958 as a small chain of convenient stores in Greater Los Angeles Area called Pronto Markets. Since then, Trader Joe’s has expanded and now has around 375 stores in 30 or more states (Trader Joes Company Competition, 2012). Trader Joe’s market may be viewed as a monopolistic competition, and falls into the grocery industry. A monopolistic market structure is characterized by many companies selling a distinct product in a market easy to enter. This market structure is similar to pure competition, except for the distinct product (Kowitt, 2010).These market structure classifications are based on the number of barriers and firms to access the market as outlined in Table one below. A perfectly competitive market exists when every contributor is considered a â€Å"price taker†, and none of the contributors influences the price of the product it sells or purchases. Two examples of a perfectly competitive market would be milk and gas. There could be many suppliers of both products, and if one supplier wants to raise their price higher than the price the market determines, consumers will go elsewhere to purchase the item in need. Other haracteristics could include: zero entry and exit barriers, zero transaction costs, profit maximization, homogeneous products, and perfect factor mobility (Colander, 2010). In a competitive market price is determined the quantity of product, marginal revenue, and the marginal cost. If the marginal revenue is higher than the marginal cost then the firm can set the price based on those numbers. If the marginal cost outweighs the marginal revenue, then the firm begins to lose money. The firm is looking for the right number that will maximize profits by having a higher revenue than cost.The firm maximizes profits based on output by determining the balance between marginal cost and marginal revenue. If the firm’s marginal revenue is higher than the marginal cost the firm will increase the output to reach the balance. A firm with a higher marginal cost, the marginal revenue will then reduce the quantity output until it reaches the balance. If the firm has reached the revenue equal to the cost at a set output, then the firm has maximized profits based on output. Barriers to entry are considered low as only a small investment may be required to enter the market.The role that competitive market plays in the economy is it tries to maximize profit, which equals total revenues minus total cost (Colander, 2010). Trader Joe’s strategic plan is making customers an integral part of creating the shopping experience, and providing customers a unique, interesting, innovative shopping experience as well as providing products that great tasting, hard to find, and from around the world. This has made it possible for Trader Joe’s to differentiate themselves from their closest competitors, Whole Foods, and Bristol Farms.According to Jay Barney, a Presidential Professor of Strategic Management and Pierre Lassonde Chair of Social Entrepreneurship at the University of Utah, in order for Trader Joe’s to be successful long term, it must possess a defensibility strategy that contains four requirements: rareness, value, non-substitutability, and inimitability. Though these conditions are tough to achieve through the four traditional marketing P’s (product, price, place, and promotion), Trader Joe’s added a unique fifth P of culture to construct walls around its competitive space (Mallinger ; Rossy, 2007).Trader Joe’s is able to accomplish this because it provides value primarily by their adventurous shopping experience that is different from those of traditional markets: low price, casual, high service with constant and unpredictable mix in product. Its uniqueness makes it difficult for their competitors to copy, and their specific consumer target makes it almost impossible to replicate by companies serving a wider range of competitive space (Trader Joes Company Competi tion, 2012). Monopolistically competitive markets are those that involve industries such as clothing, eateries, footwear, as well as in the service area.A monopolistically competitive market can be characterized as having an abundant amount of both manufacturers and consumers, consumer’s preferences for purchasing is known; survival in this area consists of the seller trying to distinguish specific products from competitors. A monopolistically competitive market could endure restrictions with entry and exit, the market is essentially heterogeneous in nature, and a market of this could lead to the increase of non-price rivalries (Colander, 2010).By the side of equilibrium, businesses come to a zero economic profit position and no business enters or exits the industry. An increase in the number businesses in the industry will result in a positive profit, and the opposite will occur in the case of a negative profit. This would provide a business the opportunity to put forth an e xtensive influence over an open market by raising the prices and maintaining the consumers they may have. In a monopolistically competitive market, the productions of goods never act as a complete replacement, but as a close substitute (Colander, 2010).Monopolies are a group of business people who act as one. Any firm that has a monopoly structure will have the most price control for its goods. The firms that operate in competitive structures will have no control over their prices. Price management is when a firm has the ability to control the prices of its products. Public ownership is not common in monopolies and there are no price takers. A monopolist ensures the price for a product or service will surely increase profits. When marginal cost equals marginal revenue the profit maximizing price and output is at the same position.In the perfect competition output is less. Monopolist could earn some economic profits, if there are no entries of new firms that exist. Microsoft is a mon opoly because there are few competitors. Microsoft is supervised by contracts and patents that create strong barriers for its potential competitors. Barriers in a monopoly are thought of as low, because a small investment would be used to enter the market. Barriers to entry for monopolies are high fixed costs, licenses, etc. limit entry.The role monopoly plays in the economy is if the firm lowers the cost for its product; the firm must lower the selling price of all units. Then the decreased price pertains to all the units that are sold and not just the previous or the marginal unit. When a monopoly charges more and produces less, they cause a price discrimination which raises economic welfare or causes deadweight losses. These things are not always beneficial to society (Colander, 2010). Oligopoly is a market that controls a commodity and is dominated by a small number of firms that act on one’s behalf.Prices placed on products by every firm included are close to matching be cause if one firm tries to change the price, this will cause other firms to do the same thing. A significant characteristic of an oligopolistic market structure is the mutual dependence of firms in the industry. The mutual dependence, real or apparent, occurs because of the small number of firms in the industry. When an oligopolistic firm’s prices or production change, it will cause noticeable effects on the sale and earnings of competitors in the industry. The firms should consider the reaction of others when formulating its prices or output decisions.The barriers can involve patent rights of the firm, accessibility of resources, financial requirements, and access to the applicable equipment. The role that oligopoly plays in the economy is that if the firm cuts prices, then other competing firms will match the price reductions. If the firm raises its prices of its products, then other firms will not match the price increase. There are no barriers to entry in an oligopoly. Ol igopoly opened up the world to free trade which makes things better for the economy. Having free trade increases the benefit of countries all over the world (Colander, 2010).For strategies, Trader Joe’s should continue with its targeted and strong organization culture that is one difficult to develop, and that provides customers with a shopping experience difficult to find. It will always be easier for competitors to do the same, but never to imitate who you are. Also, though their prices are reasonable, they are not as low as other grocery stores options. Another recommendation would be to offer lower prices, this way; they will gain customers not only for a change in food preferences, but also for great competitive prices in comparison with regular grocery stores (Mallinger Rossy, 2007).References Colander, D. C. (2010). Economics (8th ed. ). New York, NY: McGraw-Hill. Kowitt, B. (2010, August 23). Inside the secret world of Trader Joes Full Version. Retrieved from http:/ /money. cnn. com Mallinger, M. , Rossy, G. (2007). The Trader Joes Experience. Grazialdo Business Review, 10(2), 1. Retrieved from http://gbr. pepperdine. edu/2010/08/the-trader-joes-experience/ Trader Joes Company. (2012). Competition. Retrieved from http://www. hoovers. com/company- information/cs/competition. Trader_Joes_Company. cd133847612c3f8c. html

Formal Lab Report Rates of Reaction Alkali Metals Essays

Formal Lab Report Rates of Reaction Alkali Metals Essays Formal Lab Report Rates of Reaction Alkali Metals Paper Formal Lab Report Rates of Reaction Alkali Metals Paper Then, the test tube was lifted out of the water and kept in an inverted position. Finally, the gas collected was tested by bringing a burning splint to the mouth of the test tube. It was concluded that the Alkali metals were more reactive than the Alkaline Earth metals. When the active metals reacted with water, the resulting solutions were basic. Hydrogen gas was produced when calcium reacts with water. Interdenominational metals are in the first column of the periodic table and they may be readily fused and volatilities with their melting and boiling points becoming lower with increasing atomic mass. They are the strongest electrophoresis metals. (Keyword, R. 2009) These elements react vigorously, even violently with water. Alkaline Earth metals are elements in the second column of the periodic table. These elements are in general white, differing by shades of color or casts; they are malleable, extendable and mechanical. (Tutor Vista. 2008) Also, these elements are less reactive than the Alkali metals and have higher melting points and boiling points. The unionization energy is the amount of energy it takes to detach one electron from a neutral atom. The II increase from bottom to top and left to right in the erotic table. The Shod Education Foundation, Inc. 2000) The II and atomic radius increase in opposite directions. This makes sense because as the atom gets smaller, the valence electrons become closer to the nucleus. This means the attractive force holding the electron is stronger and it takes more energy to pull the electron off. The unionization energy of an atom is equal to the amount of energy given off when an electron is added to an atom. Unlike a ball, an atom doesnt have a fixed radius. The atomic radius of an atom can be obtained by measuring the distances between atoms in chemical impounds. : The atoms are pulled closely together and so the measured radius is less than if they are just touching. (Clark, J. 2004) This is what you would get if you had metal atoms in a metallic structure, or atoms covalently bonded to each other. As mentioned previously, the atomic radius decrease in going from left to right across a period. This decrease can be explained in terms of the increasing effective nuclear charge (decease shielding) in going from left to right. This means that the valence electrons are drawn closer to the nucleus, decreasing the size f the atom. Atomic radius increases down a group, due to the increases in the orbital sizes. When a metal oxide reacts with water, they create a basic solution. Therefore, when the Alkali metals and Alkaline Earth metals react with water, a basic solution is produced. In addition, the term Alkali (essentially the opposite of an acid) refers to a substance that forms the negatively charged hydroxide ion (OH-) in contact with water. (Keyword, R. 2009)Alkali metals and Alkaline Earth metals are known for their vigorous reactions with water, and these reactions come increasingly violent as one moves down the group. The reaction with water is as follows: Alkaline Earth metal + water Alkaline Earth metal hydroxide + hydrogen gas. Materials ApparatusApparatusMaterials600 ml beakers tuberose splintered gatecrash glasstweezersscoopula lithium metabolism metastasiss mathematical metered and blue litmus perpendicularity A- Reactions of Alkali Metals with Waterborne was half filled with water. Wire gauze was placed on top on the beaker. Tweezers were used to drop sodium into a beaker half-filled with water. Beaker was immediately recovered with wire gauze. When the reaction was complete, the contents of the beaker were tested with red and blue litmus paper. The beaker contents were disposed. Theses steps were repeated with lithium and potassium. Part B- Reactions of Alkaline Earth Metals with Waterborne was rinsed and half filled WI fresh water. A test tube was filled with water and inverted into the beaker. A sample of calcium was obtained using a watch glass. The calcium was added to the beaker. The gas produced by the reaction was collected in a test tube by the downward escapement of water. When the test tube was full, the test tube was lifted out of the water and kept in a n inverted position. The gas collected was tested by bringing a burning splint to the mouth of the test tube. The solution was tested with red and blue litmus paper. Reclassifications small bloodthirstinesss into flimflamming noiselessly is basicLithiumCreated medium bubblesDissoIvedHissing noiselessly is basicPotassiumPopping soundings noiseless of smokehouse into purple flimflammed is bicameralisms of calcium dissolved into a translucent solution. Liquid is basilicas a popping sound when the burning splint went into the test Hydrogen gas is produced. Discussion of the theories discussed in the introduction on first unionization energy, atomic radius and metal oxides have all been proven in this lab. Alkali metals are much more reactive than Alkali earth metals and this is due to unionization energy and atomic radius. The Alkali metals rates of reaction increase as you go down the periodic table and this is also explained by unionization energy and atomic radius. Metal oxides react with water to produce basic solutions and this is due to their chemical equation. Alkali metals produce hydrogen gas when they react with water due to the chemical equation and Alkali metals with oxides create basic solutions due to the oxides and water rule. Sodium, lithium and potassium were much more reactive than calcium was and this is due to unionization energy and atomic radius. Due to a very large size of the atoms, Alkali metals have very low unionization energies. Down the group the unionization energy decreases as atomic size increases. This is due to new shells being added and the increase in the magnitude of the screening effect of inner shell electrons. (Chem.. 1 . 05, November 14) Members of Alkaline Earth metals have higher unionization energies values compared to Alkali metals because of their smaller size, with the electrons being more attracted towards the nucleus of the atoms. The less attracted the electrons of an element are to their nucleus, the more reactive an element is because it is more willing to participate in reactions. As you go dow n the Periodic table, the reactivity of the Alkali metals increases and this is due to unionization energy and atomic radius. The lower the unionization energy, the more willing an Alkali metal is to lose an electron. The larger the atomic radius, the less significant each electron becomes and therefore, the less of a problem it is for an Alkali metal to lose one. Each element in the Alkali metal group, and in every group for that matter, becomes more reactive because they are more willing to lose electrons and therefore more willing to take part in chemistry. The definition of Alkaline is a non acidic solution, therefore it is not surprising that all of the solutions were basic. When Alkali metals react with water, one hydrogen atom splits off from the water molecule to form hydrogen gas, while he other hydrogen atom joins the oxygen to form hydroxide. Keyword, R. 2009) This also explains why all of the solutions were basic because the hydroxide ion was present in all of the solutions. The presence of a hydroxide ion is the number one way to check for a base and this gets formed when one of the hydrogen atoms splits off from the water molecule to form hydroxide. Five factors that could have cause experimental error are concentration, temperature, medium, catalysts, and surface area. A higher concentration of reactants leads to more effective collisions per unit time, which leads to an increasing reaction rate (except for zero order reactions). Similarly, a higher concentration of products tends to be associated with a lower reaction rate. (Helmsmen, A. 2009) Usually, an increase in temperature is accompanied by an increase in the reaction rate. Temperature is a measure of the kinetic energy of a system, so higher temperature implies higher average kinetic energy of molecules and more collisions per unit time. The rate of a chemical reaction depends on the medium in which the reaction occurs. It may make a difference whether a medium is aqueous or organic; polar or monopole; or liquid, solid, or gaseous. Purdon, N. 2006, November 10) Catalysts work by increasing the frequency of collisions between reactants, altering the orientation of reactants so that more collisions are effective, reducing intermolecular bonding within reactant molecules, or donating electron density to the reactants. Surface are can also influence the rate of reaction because the types of molecules can only bump into each other at the liquid solid inter face, i. E. On the surface of the solid. Therefore, the larger the surface area of the solid, the faster the reaction will be.