Perfect Competition In A Country

2462 Words10 Pages
The general idea that is being discussed here is the factors that decide a country’s economy. The first thing to understand is that since the discovery of the possible uses of fossil fuels, those have been at the center of any given economy. It is often said that the most important price in an economy, is the price of its main energy source. Almost every product or service in an economy is derived of some sort of energy, either to make or to function. The use of fossil fuels was great as it provided some reliable and abundant source of efficient energy. However, since then, it has been noticed that while they were reliable, they were causing harmful effects on the specifically because of the CO2 they emit. Also, fossil fuels are becoming scarcer…show more content…
The main organization in the market is obviously MASEN as it has affiliations with the Moroccan government and is the only one to have taken solar power to a national scale. Its only real competitor is SolaireDirect a french franchise who have themselves spotted the possibilities in the Moroccan market. As they’ve described it, their franchise is “strategic positioning in a high potential market” which in a way summarizes the state of Morocco right now. There are three types of market structure that this specific market could be. A perfect competition, an oligopoly or a monopoly. A perfect competition is when a market is easy to enter and has multiple competitors who all have a chance at being successful in the market. Markets for commodities are often in perfect competition as those are products that everyone needs and that are easy to supply. Those markets also face price competition, meaning that their way of standing out from everyone else is to have a lower price than the other competitors. This leads to consumer based pricing. Then there is oligopolies where, on the other hand, only a few organizations control the market. Oligopolies often occur when even if a market is free to enter, a few select companies have already settled and gained the consumers’ trust and therefore control the prices. A common example of an oligopoly is the smartphone market. It is only has a select amount of competitors amongst which two dominate : Apple and Samsung. The smartphone market is easy to enter but it could take a new company years to be a successful part of it. This market however differs from regular oligopolies because of its two dominant firms. In fact, Apple and Samsung together hold about 70% of the market share. Most consumers buy from them and they therefore influence the price of all subsequent firms. Lastly are monopolies where there is a single

More about Perfect Competition In A Country

Open Document