Potato Chip Industry Essay Example | Topics and Well Written Essays - 1250 words

Potato Chip Industry - dejectionvas ExampleOften, there are barriers to the entry of new-made competitors, specifi chattery potato chip products. The barriers include governing laws that ensure one entitys sole status in the menses market segment. Often, the establishment offers a claim the entity the right to exclusively operate in a new market economy (Miller, 2012, p. 533). in that respect are several advantages in the 2008 potato chip monopoly environment. Wongs, the exclusive manufacturer of Wong potato chip products in the Northwest, has no competitors. Since there are no competitors, the seller, including Wonks, can dictate the price of the products. Wonks can price its products at ten percent above cost. Wonks can also increase its current potato chip products prices by 20 percent. Wonks can raise its prices in order to allocate funds for research and development of new potato chip related products. The comp whatever can sell strawberry-flavored potato chip products. The company can sell vanilla-coated products. Wongs can sell the potato chip products in different sizes to fit the customers budget. Virgile Chassagnon emphasized From the 1930s to present day, the industrial landscape has changed considerably. The modern firm has evolved in parallel with the pilfer of the aspiration, globalization and fiscalization that began in the early 1980s (2011, p.35).Likewise, the current and future customers are at the mercy of the noncompetitive entities, like Wonks. The clients cannot search for competitors to sell the same quality product at lower prices. However, Mizan Rahmann (2011) proposed the government must(prenominal) promote perfect competition. Perfect competition has more benefits compared to the monopoly market environment. For the government to benefit from the monopoly, Doyle observed When governments interfere in markets truly open, competitive free markets do not exist. There are many examples of how competition is limited by the ent ry of new firms being blocked or in some behavior made more difficult (Doyle, 2005, p. 199). The government intervention can be the best alternative to hold on entry of prohibited competitors. The government can set a limit to the number of competitors in any local industry. In addition, Deanna Malatesta (2011) reiterated the government can institute laws that control the abuses. Malatesta observed the government counters the credible threats of opportunists, franchise violators, in the monopoly economy with more effective laws. Further, the Vaticans Pontifical Council for Justice and Peace councils call for the establishment of a world political authority that is vested with the power to control both global financial transactions and the worlds economic activities, especially controlling the outright abuses of the monopoly organizations immoderately high prices. The councils call answered the United Kingdom Prime Minister Tony Blairs assessment that the current disadvantageous tu rmoil of the current European Union economy threatened both the military preparation of the allies and their capacity to share humanitarian help to the poor and neglected members of the global society (Justice & Economics, 2011). The government benefits from monitor and controlling only one potato industry entity, Wonks, by spending less monitoring time and costs. However, some other businesses will not benefit from the