Personal Perspective Paper

Monopoly:
Exclusive control of a product or service in a specific market, or control that makes possible the fixing of prices and the virtual elimination of free competition. Direct TV currently has exclusive rights to the National Football League Sunday ticket. This is a sports package that broadcast all regular season football games. Direct TV was awarded this contract in 1994 at a cost of 700 million dollars it is now estimated that the annual cost has risen to 1 billion dollars annually. The NFL has helped Direct TV be a monopoly by not allowing the other cable and satellite providers to bid on the programming. Direct TV annual revenue is estimated to be over 6 billion dollars which a good percentage has come from the NFL Sunday ticket. Local cable and satellite providers have tried to lobby congress to force the NFL to allow other satellite and cable companies to bid on this programming. It is very realistic that without this programming Direct TV would be just another company in the industry.
Simulation Summary:
Quasar in the beginning was the only player in the market. Even though they were a monopoly they could not continue to pass on their costs to customers. This would eventually affect the quantity sold. The demand for neutron is facing a downward sloping curve. This is because increased prices really slowed the demand. Orion has now entered the market creating competition for Quasar which is referred to as an Oligopoly. Quasar chose to drop prices for their product to increase sells however it could end being costly and lowering overall profits. Next Quasar was faced to develop more innovative products because additional competition has entered the market with same product but multiple brands of the notebook. This is referred to as Monopolistic Competition. The decision to invest money on the existing brand would be costly and profits would be low. The smart thing for Quasar would be to invest on new brand to push the competition and expand the market. Cost cutting measures taken by Quasar did increase profit levels over the competition. However in a perfect competition scenario cost reduction and not price or quantity is the focus for decision making.