The Simulation And Factors Discuss Thereof From The Tata...

This paper is to discuss the simulation and factors discuss thereof from the Tata Simulation Exercise. The following will consist of the explanations for the types of market systems in place in a capitalist market. Following the explanations will be the discussions of the different scenarios that took place. This will lead to the conclusion of which will include the perfect competition scenario. Market Structure This first subject will be covering the different structures of the market and how they differ in the capitol economy. These are to include: monopoly, oligopoly, monopolistic competition, and the perfect competition. Each of these structures will be broken down into how they fit and which is the preferred method in product†¦show more content†¦Additionally, there are a couple examples of monopolies that are allowed to service certain segments of the public. These include, but are not limited to, most utilities that are provided to the public as a regulated cost and pharmaceuticals that are patient bound (Investopedia, 2016). The introduction of a product gives an advantage to the pharmaceutical companies, but it also drives new and innovative research for new medications on the market. The other example would be the utilities, which there would be more chaos than competition, creating a need for the monopoly. Next is the oligopoly strategy in a free market economy. With this type of strategy, there are only a few providers of a good or service (Online Economics, 2016). This also includes those that provide to both businesses and the general public at which there are still some smaller companies that will operate as well. There are a few examples of this type of strategy that are allowed in the free markets to include: airlines, oil/gas, banks, supermarkets, and car dealers just to name a few that most people in the United States use. There is little that can be done when these are more resource based commodities and there cannot realistically be more than just a few players in these industries. They use marketing tactics to sway a small amount of people from another company in the same industry. A good example of this would be