L4M5 Exam Dumps : Commercial Negotiation

Monopolistic competition exists in market where there are many competing producers but they will try to use product differentiation. Although their products may be very similar, their ability to differentiate means that they can act as monopolies in short run, irrespective of the actions of their competitors.

In perfect competition, there are no barriers to entry to the market or exit from the market. In monopolistic competition, there tend to be fewer barriers to entry or exit in these markets than inoligopolistic markets, but it doesn't mean that there are absolutely no barriers to entry in monopolistic competition.

In perfect competition, the demand curve is perfectly elastic, which means that it will be horizontal. Otherwise, in monopolistic competition market, the demand curve will have normal downward slope.

LO 2, AC 2.2

In microeconomics, equilibrium price is determined when the quantity demanded is equal to the quantity supplied at equilibrium price in a market, there will be no shortages and no surpluses. If we combine our supply and demand curves on one graph, the point at which they converge determines the equilibrium price. If the price is set above this price and you read across the graph you will see the supply excess demand and there will be a surplus. In order to reduce this surplus, the price will need to fall. The scenario is illustrated in the graph below:

Chart, line chart Description automatically generated

For a private healthcare IT project, Senior Management (strategic decision-makers) and Software support developers (technical implementers) are the primary stakeholders. The general public and pharmaceutical suppliers are external parties not directly affected by the IT project outcomes. Identifying true stakeholders ensures effective engagement, reduces resistance, and aligns negotiation priorities with those who influence or are impacted by the decision. Misidentifying stakeholders risks ignoring critical voices, undermining project success and negotiation alignment.