Econ

Market Structure ambiance Products is big part of the commercialize building in the gases industry. A marketplace social system is the personal characteristics of the market within which firms interact. (Colander, 2008, pg. 282). A market structure is resolved by the amount of firms in the market and the barriers to enter it. oxygenise Products go under the category of an Oligopoly. An Oligopoly is a market structure in which there ar only a a few(prenominal) firms and firms and firms explicitly labour other firms likely response into account. (282). blood Products presently ar competing with three other companies globally and they are Praxair, Linde and Air Liquide. To cleaveher these companies combined with Air Products capture a jibe up of 75% of the market share in the gases industry. The overcome market share that is captured by these four companies creates many barriers for other beau monde to enter the market. Barriers for example are stricter governme nt lawmaking and regulations. These tighter laws and regulations tote up to higher administration cost that are then passed onto the consumers.

Prices comprise of electricity is the most significant voice in cost of goods sold in the gases industry, and significant amounts of capability are need in any of Air Products plants. If the toll of electricity were to substantially rise, Air Products will either be forced to pass-through costs to their clients, or if it is not able to do so, take a revive to its margins. If the legal injury were to be passed onto the consumer they hand the risk of losing a sale, and on the other hand if they take a hit on their bottom line overdu e to the increase the electricity bill then ! you have to repartee to unhappy investors. In an oligopoly like Air Products they keep a close spunk on how their competition is pricing their materials and they price their product check to keep a hold of their market share.If you want to get a full essay, order it on our website: OrderEssay.net

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