Economy

Economy
Introduction
The legislation process of Anti–Monopoly Law has been indeed a long journey. The new AML is a tremendous leap
forward for China, bringing China into the modern world of antitrust and competition law. The law, which aims to prevent
dominance of any one company, was first proposed in 1994. But its pace was slow until 6 years later because of pressure
from big state–owned companies and multinationals that had just started doing business in China. It wasn't until 2001,
when China joined the World Trade Organization, did the process accelerate. In August 2007, the law was finally passed
by the National People's Congress. Although the measure compromised with state–owned enterprises, which dominate
industry, people tend to believe ... Show more content on Helpwriting.net ...
In addition, market dominance will be presumed to exist in the following cases (although this presumption can be rebutted
by evidence to the contrary): * if the operator has a market share of at least 50 per cent; * if the joint market share of two
operators accounts for at least two–thirds of the relevant market; or * if the joint market share of three operators accounts
for at least three–quarters of the relevant market. * The monopolistic practice * The definition monopolistic competition is
firms which in effect hold a monopoly over their products, in that the firm is able to influence the market price of its
product by altering the rate of production. Monopolistic competitive firms produce products that are not perfect
substitutes or are at least perceived to be different to all other brands products. Unlike in perfect competition, the
monopolistic competitive firm does not produce at the lowest possible average total cost. Instead, the firm produces at an
inefficient output level, reaping more in additional revenue than it incurs in additional cost versus the efficient output
level.
There are several kinds of monopolistic practice as follow * Dumping can refer to any kind of predatory pricing.
However, the word is now generally used only in the context of international trade law, where dumping is defined as the
act of a manufacturer in one country exporting a product to another country at a
... Get more on HelpWriting.net ...

Monopolistic Competition
CHAPTER 25
Monopolistic Competition and Oligopoly
Topic Question numbers
___________________________________________________________________________________________________
1. Monopolistic competition: definition; characteristics 1–17
2. Demand curve 18–24
3. Price–output behavior 25–78
4. Efficiency aspects 79–88
5. Oligopoly: definition; characteristics 89–112
6. Concentration ratio; Herfindahl Index 113–140
7. Game theory 141–156
8. Kinked–demand curve model 157–176
9. Collusion; cartels; price leadership 177–194
10. Advertising 195–200
11. Efficiency aspects 201–204
12. Review of four structures 205–226 Consider This 227–228 Last Word 229–233 True–False 234–258 ... Show more
content on Helpwriting.net ...
C) the industry would more closely approximate pure competition. D) the likelihood of collusive pricing would increase.
Answer: C
Type: A Topic: 1 E: 461 MI: 217 10. Economic analysis of a monopolistically competitive industry is more complicated
than that of pure competition because: A) the number of firms in the industry is larger. B) monopolistically competitive
firms cannot realize an economic profit in the long run. C) of product differentiation and consequent product promotion
activities. D) monopolistically competitive producers use strategic pricing strategies to combat rivals.
Answer: C
Type: A Topic: 1 E: 461 MI: 217 11. A monopolistically competitive industry combines elements of both competition and
monopoly. The monopoly element results from: A) the likelihood of collusion. C) product differentiation. B) high entry
barriers. D) mutual interdependence in decision making.
Answer: C
Type: D Topic: 1 E: 462 MI: 218 12. Nonprice competition refers to: A) low barriers to entry. B) product development,
advertising, and product packaging. C) the differences in information which consumers have regarding various products.
D) an industry or firm in long–run equilibrium.
Answer: B
Type: A Topic: 1 E: 461 MI: 217 13. A significant difference between a monopolistically competitive firm

Questions On The Business Sector Structures
In this paper we will take a gander at various sorts of Market Structures. There are a wide range of sorts of firms in the
business sector structures, some comparable and some altogether different. This implies a few firms, as indicated by how
the supply and request will influence their valuing, will attempt to expand their benefits. A few firms almost no
substitutions or have no substitutions, which implies that there is next to no or no opposition, so they can control their
valuing. The motivation behind the paper is to break down the business sector structures to make you mindful of the
diverse classifications of business sector structures inside of the organizations. "Perfect competition is the market structure
in which there are many sellers and buyers, firms produce a homogeneous product, and there is free entry into and exit out
of the industry. There are six basic assumptions for the model of perfect competition."(Amacher and Pate, 2012) Firms in
the perfect competition are known as value takers. The items that every firm delivers are normally the same,
homogeneous. "If changes in nominal aggregate demand do not affect real output and employment, a financial crisis
cannot be very important. However, the neutrality result does not really apply in the real world, either in the short or long
runs."(Ng, Y. 2009) A decent illustration of this is wheat; all items are precisely the same whether you purchase it from an
agriculturist nearby or from the

Research Paper On Monopolistic Competition
Introduction
A market is one of the many varieties of institutions, systems, social relations, procedures, and infrastructures whereby
parties engage in exchange. There are different types of markets
1) Perfectly competitive
2) Monopoly
3) Monopolistic competition
4) Oligopoly
Every firm and sector that operates in the market comes under one of the four types mentioned above. Fast food sector is a
monopolistic market. There are many players ranging from well established foreign players to domestic fast food centres
to stalls we find on the road side.
Indian Fast food Industry
The Indian fast food habits and the customer perception towards fast food has noticed gradual shift in the recent years as
the significant portion of the population ... Show more content on Helpwriting.net ...
Income levels of residents in Ranchi are lower than the average income of other major cities. Ranchi is still in developing
phase and some of the major international and domestic players are currently present in it. Apart from these players street
side fast food centres and other small restaurants are also present. All of products offered by the above mentioned players
are differentiated and also close substitutes to each other. The main competitors in Ranchi are
1) KFC
2) Dominos'
3) Subway
4) Other fast food restaurants and stalls.
Monopolistic competition is defined as an industry with players offering unique differentiated products. But because of
many close substitutes demand for this product is very elastic. These close substitutes are competition for a company.
Characteristics of monopolistic competition:
1. One seller of a narrowly defined product (such as KFC's chicken)
2. Many close substitute products ––– the products of the competitors are differentiated 3. Good information on the part of
buyers and sellers 4. Relatively easy entry and exit from the industry
Competition with Differentiated

Oligopoly: Samuel Slater's Monopolistic Competition
Monopolistic competition is a market situation in which there are many buyers along with a
relatively large number of sellers. The various products available in this market are similar and
intended to satisfy the same need. However, each seller attempts to make its products different.
Product differentiation is the process of developing and promoting differences between one's
products and all similar products.
Oligopoly
An oligopoly is a market situation (or industry) in which there are few sellers. These sellers are
quite large and must make sizable investments to enter into their markets. Because there are few
sellers, the market actions of each can have a strong effect on competitors' sales.
Monopoly
A ... Show more content on Helpwriting.net ...
● The domestic system was a method of manufacturing in which an entrepreneur
distributed raw materials to various homes, where families would process them into
finished goods.
The Industrial Revolution
● In 1790 Samuel Slater, an Englishman, set up a textile factory in Rhode Island to spin raw
cotton into thread. Slater's ingenuity resulted in America's first use of the factory system
of manufacturing, in which all the materials, machinery, and workers required to
manufacture a product are assembled in one place.
● By 1814 Francis Cabot Lowell had established a factory in Waltham, Massachusetts, to
spin, weave, and bleach cotton all under one roof. Lowell used a manufacturing technique
called specialization. Specialization is the separation of a manufacturing process into

distinct tasks and the assignment of different tasks to different workers for the purpose of
increasing efficiency of industrial workers.
● The three decades from 1820 to 1850 were the golden age of invention and innovation in
machinery.
● At the same time, new means of transportation greatly expanded the domestic markets
for American products and by 1900 the nation shifted from a farm economy to

The Advantages And Disadvantages Of Monopolistic Competition
In this modern era, big firms are facing stiff competition as they come up with more and more products with their own
special trademarks to distinguish themselves. Such competition is called monopolistic competition where all firms
produce similar yet not perfectly substitutable products. There is no restriction as any firms are able to enter the industry
as long as the profit generated is enough the cover the initial cost and earnings. Each firms have their own flair and
attraction to stand its own ground it the market. Monopolistic competition differs from perfect competition as production
cost is not as issue. Because of this, firms are usually left with excess production. (Investopedia, n.d.)
There are many characteristic of monopolistic competitions. One of such is that each firm makes independent decision
regarding their product pricing and output based on the market and production cost. Each firm has the knowledge and
ability to handle ... Show more content on Helpwriting.net ...
The advantages of monopolistic competition are that there are no significant barrier to entry therefore everything is
contestable. The differentiation will create diversity, choice and utility making life more interesting. The market is more
innovative with monopolistic competition with retailers coming up with more and more new ideas to attract customers.
The disadvantages however is that some differentiation does not create utility but generates unnecessary waste. Ideas that
are thought of in short notice will not end up well in most cases. Firms are also allocatively and productively inefficient in
a long and short run. (Investopedia, n.d.)
Take for example the competition between the 2 smartphone companies Oppo and Vivo. Both are relatively new in the
market and is working their way up with their products that have their own special

Monopolistic Market Competition Of The Coffee Shop...
Monopolistic Market Competition
In the UK, the three leading competitive coffee brands are Costa Coffee (with 1,992 outlets), Starbucks Coffee Company
(with 849 outlets) and Caffè Nero (with 620 outlets). They enjoy a 3–firm concentration of 53%; (Market concentration
measures the market share of the largest companies in an industry)
The coffee shop industry is a monopolistically competitive market; this entails a market situation where there are a lot of
large companies competing, but each company has some degree of market power, being able to determine its own price
and ergo have an insignificantly small share of the market (low concentration). A monopolistically competitive market
besides being a perfect competition has its characteristics of a monopoly too. (imperfect competition). (Monopoly is a
market situation where a single company has most of the market for a certain type of product or service and often times
accompany inflation of prices which deem inferior products over other companies.)
When companies are making decisions, the companies do not worry about how the rivals will react, in part to each
company's actions are unlikely to affect its rivals to a great extent hence they are independent. In addition, there is perfect
knowledge in the market hence new companies have the freedom to enter into the industry. The companies are also profit
maximizers, producing output where marginal revenue equals marginal cost; the profit maximising condition. Companies
in a

Case Study Of SP Setia Business
History and Development
SP Setia business incorporated in 1974 as a construction company and began to focus on their core business which is
property development in 1996. One of their property development is the 700–acre Pusat Bandar Puchong (Puchong Town
Centre). According to SP Setia Bhd Group, (n.d.) the company will set a benchmark in every SP Setia Projects, which is a
well–planned development that balances affordable quality residential and commercial properties with an outstanding
landscape and community–centric facilities.
SP Setia Project has three key well–established economic centers which are Klang Valley, Johru Bahru and Penang.
Besides, SP Setia also invested in the East Malaysia by building the state–of–the–art transportation ... Show more content
on Helpwriting.net ...
Its purpose is to develop ecoLakes at MyPhuoc Industrial Park. Moreover, SP Setia had been exploring opportunities in
China while expanding their business in Australia and Singapore.
Market Structure
According to (carissacheong; sp setia bhd, 2013), SP Setia has implemented the monopolistic competition market
structure. Monopolistic competition is defined as firms having a common market structure but each one sells a slightly
different product as they have various competitors, such as property development. Property development offers the same
type of product, but each of their products has their own element of uniqueness that add value to their product depending
on the venue, but the firms are all targeting for the same customers.
There are a few significant characteristics in monopolistic competition, such as large number of firms, differentiated
product, easy of entry and local advertising. SP Setia is not the only property development firm in Malaysia, as there are
other property developers too, including ERM Sunrise Berhad, Sime Darby, See Hoy Chan, Sunway Property, Dijaya
Group, MK Land, Berjaya Group, Glomac and Mah

The Theory And Monopolistic Competition Minimum Wages
Undertaking general training in the firm by its employees became a normal practice in a modern world. It is seen as an
educational program which helps workers to improve their skills and increase their productiveness. Nevertheless, more
companies are ready to pay for such an improvement as they are expecting higher profits and a rise in quality. However,
such a practice remains controversial and some experts do not believe in its efficiency. Furthermore, another curious
tendency observed in a modern world is a regular increase in minimum wages. Most notable economists defend a classical
view which states that rise in a minimum wage will inevitably bring higher unemployment and give less chances to young
people to find a job. However, according to oligopolistic theory and monopolistic competition minimum wages will
eventually lead to higher employment, rather than the opposite. This view will be carefully discussed and analysed in this
paper with empirical evidence.
Oligopsony is described as a market with few buyers, while monopsonistic competition is "an oligopsony with free entry,
so that employer profits are driven to zero". Two great examples of such a market structure are a world market of cocoa,
where there are only three major firms, which purchase cocoa bean production (Cargill, Archer Daniels Midland and
Callebaut), and a tobacco market in United States, where Altria, Brown & Williamson and Lorillard Tobacco Company
are three major companies which purchase around

Similarities Between Monopolistic Competition And Islamic...
Economics is one of the social sciences that study of how society manages its scarce resources. The field of economics is
traditionally divided into two subfields which is microeconomics and macroeconomics. Monopolistic competition is one
of the market structures in the microeconomics. According to Krugman and Wells (2012), monopolistic competition is a
type of imperfect competition in which there are many firms selling products that are similar but not identical. It has some
features of perfect competition and some features of monopoly. Islamic economics is the study of the economic problems
of the people who were inspired by Islamic values. The two similarities of the monopolistic competition and Islamic
economics are government involvement and free exit and entry of the market in the long run whereas the differences are
price of good, welfare of society and advertising. On the one hand, the similarity of monopolistic competition and Islamic
economics is government involvement. One principle of microeconomics that can see in this similarity is governments
can sometimes improve market outcomes. For the monopolistic competition, because of the monopolistic competitors are
making zero profits already, requiring them to lower their prices to equal marginal cost would cause them to make losses.
Therefore, government is decided it is better to live with the inefficiency of monopolistic pricing that is the markup of
price over marginal cost. Besides, ... Show more content on Helpwriting.net ...
Islamic economics is more considered on the welfare of society such as Muslims have the responsibility to their society
through zakat while monopolistic competition is concerned on profit maximization by using advertising to convince
customers to buy theirs

South Africa Competition Policy Originates From The...
South Africa competition policy originates from the Regulation of Monopolistic Conditions Act, 1955 (Act No. 24 of
1955). There was a need to prevent dramatic increases in oligopolies hence a review of the Act in the 1970s that found
that the policy had been unsuccessful in preventing a dramatic increase in oligopolies. Thus, the Maintenance and
Promotion of Competition Act, 1979 (Act No.96 of 1979) was introduced which was administered by the Competition
Board.
Amendment of the Act gave further power to the Competition Board, including the ability to not only eradicate new
concentrations of economic power but also existing monopolies and oligopolies. However, on both substantive and logical
grounds the amendment to the Act still had flaws that prevented the effective application of competition law. This is
contradicting the main objective of promoting competition in SA.
Economic policy in SA was formed with dependence on extraction industries such as gold and diamond extraction. In the
19th century these industries were isolated from world markets. Policies in these industries protected investors whom
most were foreign. When government realised the risks of over–specialisation in the mining industry it adopted policies
that encourage farming and local manufacturing. Monopoly concessions were issued around the 19th century. Ensuring
manufacturers benefit from low input costs such as electricity and steal, through protective tariff barrier, and supplied by
state owned

An explanation of monopoly, oligopoly, perfect...
The Australian market is a diverse economic ocean – it has different species of marine life (industries), different swells
(market structure) and even 'hot' and 'cold' spots (public companies). One of the key determinates to a successful national
economy is the structure of its markets. The main market structures are: 1. Monopoly
2. Oligopoly
3. Perfect Competition
4. Monopolistic Competition
Each of these market structures have unique characteristics, and can be classified according to three factors. The degree of
competition, the first factor, is important as it classifies markets into different market structures. It compares the relative
sizes of firms, the amount of sellers (vendors) and the barriers of entry to the market. The ... Show more content on
Helpwriting.net ...
They can only accept the prevailing market price. There are no barriers for entry to the industry. Any firm can enter the
market and the present sellers can't stop that firm from entering. Advertising is practically pointless in perfect competition
– because the products are virtually indistinguishable from each other, the purpose of advertising is defeated. Perfect
competition is a theoretical market structure. This means that in theory, it is possible, but it is not usually common practice
in an economy. Australia's fruit and vegetable market, however, would be the most similar.
Monopolistic Competition:
Monopolistic competition is a market in which a very limited number of very large firms operate, selling similar products.
The main difference between the products of the companies is packaging and display. In monopolistic competition,
advertising plays an extraordinarily important role – the companies need to distinguish between each others products, and
come out saying that theirs is worth purchasing. Another great power in monopolistic competition is a concept known as
'brand loyalty'. The consumer selects the brand that they prefer or appeals to them the most, and they always buy that over
the competition. The best example of monopolistic competition would have to be Coke and Pepsi. Both companies release
a similar beverage, both have their minor subtleties, and advertising

ECO 561 Week 6 Final Business Proposal
Home Depot Final Business Proposal Nicole Garcia ECO/561 December 22, 2014 Susan Mc Master Home Depot
Business Proposal Bernie Marcus and Arthur Blank founded Home Depot Corp in 1978 (The Home Depot, 2013). The
business created strategic product analysis providing an assortment of items to consumers. From the beginning, workers
have been able to deliver superior customer satisfaction in the business, helping consumers with jobs such as handling
power tools, changing out parts on appliances, laying tile, etc. The Home Depot employees all underwent arduous training
to familiarize each employee with products. In addition, the business began hosting workshops to teach consumers on
how to do things themselves. Home Depot ... Show more content on Helpwriting.net ...
The business set up design examples of kitchen and bathroom designs. These design examples are set as a design service
and example to the consumers who install Home Depot merchandise in the plans of his or her home remodel, renovation,
or design. This strategy did not increase the production at each store, as many consumers would take ideas from the
example designs completed at the Home Depot and acquire similar merchandise from other stores like the Internet or
other home improvement retailers. The procurement policy has changed to include higher product lines like Thomasville
furniture and RIDGID tools known high–end items in the furniture and professional grade tools industry. In addition,
Home Depot has collaborated with Martha Stewart Living offering a select brand of home improvement merchandise in
certain types like paint, outdoor living, and home organization merchandise from Martha Stewart Living (Home Depot,
2013). By modifying strategies from internal industries such as example design stations that drive merchandise, the
emphasis should be retaining the consumer through purchasing Home Depot's products and guaranteeing that products
remain available. Home Depot has changed their strategy and policy of purchasing to reflect the changes in the domestic
market. Given is an outcome to raise demand for a service, fluctuating the demand curve to the right. By adding features
to the provision or constructing it quicker or more dependable, Home

Difference Between Monopolistic Competition And Oligopoly
The determination of prices of commodities depends upon the type of market structure in which they are produced. There
are various markets prevailing in an economy like (a) perfect competition, (b)Monopoly,(c) Monopolistic Competition,
and (d) Oligopoly. Monopoly, monopolistic competition and oligopoly are generally grouped under imperfect
competition, since these three markets differ in respect to the degree of imperfections in the market.
Before explaining all these markets in detail, it will be quite important to understand the meaning of the term market in
economics.
1.2 Meaning of Market
Market in general means a particular place or locality where goods are sold and purchased. However, in economics, by the
term 'market we do not mean any particular place or locality in which goods are bought or sold. The ... Show more content
on Helpwriting.net ...
Large number of buyers and sellers: The first important feature of monopolistic competition is that under it there are
relatively large numbers of buyers each satisfying a small share of the market demand for product. The number of buyers
in monopolistic competition is also large. Because there is large number of firms under monopolistic competition, there
exists stiff competition between them.
2. Product Differentiation: The second important feature of Monopolistic Competition is that products produced by
various firms are differentiated. This means that the products of various firms under monopolistic competition are not
same but similar. Therefore there prices cannot be very much different. Because of similar products and close substitutes
the firms under monopolistic competition compete with each other.
3. Selling Costs: In monopolistic competition the products are close substitutes of one another, In order to differentiate
their products firms incurs selling cost Selling costs refer to the expenditure on advertisements, sale promotions,
warranties, customer services, packaging, colours are brand

Monopolistic Competition is a market structure which combines elements of monopoly and competitive markets.
Essentially a monopolistic competitive market is one with freedom of entry and exit, but firms are able to differentiate
their products. Therefore, they have an inelastic demand curve and so they can set prices. However, because there is
freedom of entry, supernormal profits will encourage more firms to enter the market leading to normal profits in the long
term.
* A monopolistic competitive industry has the following features: * Product differentiation * Many firms * Free entry and
exit in the long run * Independent decision making * Market Power * Buyers and Sellers do not ... Show more content on
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That is, the MC firm's profit maximizing output is less than the output associated with minimum average cost.
Both a PC and MC firm will operate at a point where demand or price equals average cost. For a PC firm this equilibrium
condition occurs where the perfectly elastic demand curve equals minimum average cost. A MC firm's demand curve is
not flat but is downward sloping. Thus in the long run the demand curve will be tangential to the long run average cost
curve at a point to the left of its minimum. The result is excess capacity.
Problems:
While monopolistically competitive firms are inefficient, it is usually the case that the costs of regulating prices for every
product that is sold in monopolistic competition far exceed the benefits of such regulation.[citation needed] However, it
would not have to regulate every product and every firm just the most important ones. That alone would be an
improvement on the current situation. A monopolistically competitive firm might be said to be marginally inefficient
because the firm produces at an output where average total cost is not a minimum. A monopolistically competitive market
is productively inefficient market structure because marginal cost is less than price in the long run. However,
monopolistically competitive markets are allocatively efficient. Product differentiation increases total utility by better
meeting people's wants than homogenous products in a perfectly competitive

Competition: Oligopoly And Monopolistic Competition
2. Competition Itself
When one wants to set up his/her own business, he/she has to come up with market structure they will use.
Finding the suitable market structure can a significant factor in the way business will succeed or fail. The interconnected
characteristics of a market, the number of buyers and sellers, level and forms of competition among them, extent of
product differentiation, and ease of entry into and exit from the market called market structure (BusinessDictionary.com,
2014). There are five different types of market structure: Perfect competition, Oligopoly, Monopoly, Monopolistic
Competition and Monopsony.
In this paper we will take a closer look only at Oligopoly and Monopolistic competition, because these market structures
... Show more content on Helpwriting.net ...
The features that drive demand when it comes to Samsung products are the innovations. This is why Samsung in some
cases dominates the market. Samsung is able to produce high technological products and offer it to consumers. The
greatest example of this is smartphone called Galaxy S III. When Samsung started manufacturing Galaxy S III they were
one of the top sellers of the smartphones all over the world. They almost beat the Apple, but after iPhone 5 came out the
significant changes occurred in the market.
Apple and Samsung followed different strategies while Apple has always wanted to create something innovative that
Samsung pursued a strategy of copying successful technology at a lower price. The pure example of innovation is an
IPhone. Apple Inc. released its first Smartphone, and they named it "iPhone" in 2007 on June 29th. The iPhone was a
revolution in the cell phone market. People considered it as something outstanding. Just like nowadays in the morning
hundreds of customer lined up in front of the stores on June 29, 2007 in 6 a.m with an idea to have the first iPhone. After
they sold all amount of iPhones, they faced a shortage. Shortage is a market condition existing at any price at where the
quantity supplies is less that quantity demanded (Economics for Today, 2014). The demand was much higher than supply
and in order to avoid shortage in sell they started to increase the prices in order to meet the market equilibrium. As they
increase the prices the demand will fall because not everyone will be willing to pay a high price for such a

Pros And Disadvantages Of The NHS
NHS 1. The NHS is one of the best health services in the world however due to the service being free for anyone in the
UK to use this takes up a lot of resources, which costs the government millions a year. The reason why some types of
services/medicines the NHS can't provide is because they are either too expensive or they are in short supply therefore
you would have to look elsewhere beyond the UK. As shown in the online article from the independent where one life
saving drug has had its price shoot up over 5,000 per cent. (Independent) This outrageous price increase would make it
nearly impossible for the NHS to keep being as it is already being run on a budget.
http://www.independent.co.uk/voices/nhs–drug–price–rip–off–pharmaceuticals–free–market–is–a–myth–a8067676.html
The reason for this is because the NHS runs of the tax payer's money and to provide the costlier services that they can't,
the government would have to raise the tax people pay. This would be extremely unpopular as people already believe they
pay enough tax, plus have a massive effect on the economy as people would have less money to spend therefore less
money to boost the economy. Another way that the NHS could provide certain expensive services/medicines is through
borrowing money and as the UK is already in debt this would be bad for the economy. This would give the UK less
money to spend in other vital areas, so instead the NHS stick with the minimum charge of 8.60 as it is affordable even
though

Sheamoisture : A Brand Nubian Heritage
SheaMoisture is a company that provides various products relating to beauty, such as cosmetics, hygiene, and hair care
products. It is a company that is tailored to the African American community. SheaMoisture, along with another popular
brand Nubian Heritage, is owned by Sundial Brands, and Richelieu Dennis is the CEO and co–founder Sundial brands is a
certified B Corp company (Our Sundial, n.d.). A B Corp company means that they are for–profit organization who has
been certified to have met the standards of a non–profit organization, in terms of environmental and other forms of
regulation. (B, n.d.).
SheaMoisture was founded by Sofi Tucker. According to SheaMoisture's website, "Sofi Tucker started selling Shea Nuts
at the village market in Bonthe, Sierra Leone in 1912" (Our SheaMoisture, n.d.). Tucker sold hair and skin products; in
fact, Tucker is considered as SheaMoisture's "Grandmother". SheaMoisture natural hair products ranges from hair
masques to the standard shampoos and conditioners. Coconut and Hibiscus Curl Enhancing Smoothie is their current
best–selling hair product. SheaMoisture also have products for the body while specializing for men, children, and mothers
including women who wear makeup. Some of their products in the afore mentioned areas include African Black Soap,
Raw Shea Cupuacu Mommy Soothing Nursing Balm, and Shea Butter Velvet Lip Crayon. (Welcome, n.d.). SheaMoisture
creates natural products that are certified to be organic, sustainably–

Monopolistic Competition in the Retail Industry
Monopolistic Competition in the Retail Industry
The retail industry is a prime example of the modern version of Chamberlin and Robinson's model of Monopolistic
Competition (Grewal, 441). The retail industry consists of vast markets with different brands and goods of one common
goal, to sell their products. To cater to this rapidly changing market many large scale retailers are findings ways to make
their product more appealing to the public in hopes of gaining market share over their competition. As prices rise,
customers are forced to buy substitutes of well–known brand names or alter their preferences. This results in the
phenomenon known as monopolistic competition.
Monopolistic competition is defined as the result of many firms ... Show more content on Helpwriting.net ...
The percentage change in price is greater than the percentage change in demand. The consumer surplus is less than it
would be during the normal season for a good due to the producer being able to charge more. During the peak season for a
good, such as Star–Bucks pumpkin spiced latte in mid–September, the company can make more money by introducing a
product for a short period of time than it would if it offered the product year round. In monopolistic competition, it is best
to offer differentiated products constantly during the seasons, such as the addition of holiday beverages and food items in
grocery

INTRODUCTION
Pure monopoly and perfect competition are two extreme cases of market structure. In reality, there are markets having
large number of producers competing with each other in order to sell their product in the market. Thus, there is monopoly
on the one hand and perfect competition, on the other hand. Such a mixture of monopoly and perfect competition is called
monopolistic competition. It is a case of imperfect competition.
The model of monopolistic competition describes a common market structure in which firms have many competitors, but
each one sells a slightly different product. Monopolistic competition as a market structure was first identified in the 1930s
by American economist Edward Chamberlin, and English economist ... Show more content on Helpwriting.net ...
For example, consumer electronics can easily be physically differentiated. b. Marketing differentiation, where firms try to
differentiate their product by distinctive packaging and other promotional techniques. For example, breakfast cereals can
easily be differentiated through packaging. c. Human capital differentiation, where the firm creates differences through the
skill of its employees, the level of training received, distinctive uniforms, and so on. d. Differentiation through
distribution, including distribution via mail order or through internet shopping, such as Amazon.com, which differentiates
itself from traditional bookstores by selling online. 6. Firms are price makers and are faced with a downward sloping
demand curve. Because each firm makes a unique product, it can charge a higher or lower price than its rivals. The firm
can set its own price and does not have to 'take' it from the industry as a whole, though the industry price may be a
guideline, or becomes a constraint. This also means that the demand curve will slope downwards. 7. Firms operating
under monopolistic competition usually have to engage in advertising. Firms are often in fierce competition with other
(local) firms offering a similar product or service, and may need to advertise on a local basis, to let customers know their
differences. Common methods of advertising

Monopolistic Competition Essay
Assignment 2: Operations Decisions Name Professor Course Aug 13, 2015 Low–calorie Frozen Food Industry Low –
calorie foods are those with 40 calories or less per serving. The low calorie frozen foods is the choice for a healthy and
easy to cook meal. There are several choices of low calorie frozen, microwaveable food products available in the market
nowadays (Creasy, 2015). This implies that the market structure is somewhere between a monopolistic and oligopolistic
competition, leaning more towards monopolistic competition (Economicsonline.co.uk, 2015). The low–calorie frozen
food products available in the market are relatively similar with slight differentiation amongst them. Leading Competitors
The lifestyle of people has ... Show more content on Helpwriting.net ...
Moreover, one needs to have a clear picture of the potential economic growth offered in the industry. Statistics clearly
show that between the years of 1983 to 1988, frozen foods have grown in popularity (BURROS, 2015). To decide upon a
market structure, the objective of growth inside a company is also equally important. Furthermore, a company needs to
have a clear vision of what level of operation is it working on. These levels of operation can be targeting the local market
or the global market depending on the company's vision. Another important factor is consumer behavior towards
purchasing the product in question. In assessing consumer behavior of frozen food industry, we first account for our target
customer. We assess the gender, age, education and other socio–economic factors that affect a consumer's choice of food
products. One must also be fully aware of healthy eating habits in order to purchase low–calorie frozen food products.
Thus, it is absolutely vital that the prospective customer of our produce has the educational background and awareness
regarding health. Effectiveness of the Market Structure An effective market structure is shown by the increase in demand
of a certain product. According to economic theory, the demand of low–calorie frozen food is inelastic in nature. This
means that an increase in the price of the low–calorie frozen food leads to the fall of the quantity demanded by less than
proportionate amount. Furthermore, since

Monopolistic Competition Of Apple
Introduction A smart phone is a mobile cellular device which offers advanced technologies with functionality similar as a
personal computer. While offering a regiment platform for application developers a smart phone performs as complete
operating system software. Secondly, there are also very advanced features in smart phones such as internet, instant
messenger and e–mail and also built–in keyboard are very typical. Because of these reasons, a smartphone is a miniature
computer with the similarities of a simple phone.
With the growing speed of technological advancement, Smartphones have become the essential components of daily
performance. For convenience devices can combine multiple features and which give more mobility and entertainment. ...
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Imperfect competition can not operate under strenuous and tough procedures of a perfect competition market structure. In
this particular instance of of imperfect competition, the market is satisfied with the comfort of increasing the price in order
to gain maximum profit. Apple sells the divergent technology in the market. This allows them to sustain themselves in the
market effectively and logically.
Compared to an oligopoly, monopolistic competition has many more competitors, so Apple's 'super tablet' computer is
considered as monopolistic competition. Other computer companies such as Samsung, HTC, and Dell are adept
competitors that share the mobile and tablet computer market around the world. The sales revenue made by these
competitive companies is close enough to Apple that keeps themselves competitive. Monopolistic competitive market
displays the following

The Types Of Market, Monopolistic Competition, Oligopoly,...
The assignment for this week was to review the video which discusses the four types of markets: perfect competition,
monopolistic competition, oligopoly, and monopoly. In order to review this effectively there must be an understanding of
the terms. According to our text, perfect competition involves products competing clients and that they offer corporations
less potential profits than imperfectly competitive markets do. (Bryd, Hickman and McPheson, ) The text also referenced
imperfect competition and this is when entry is restricted or goods are differentiated. (Bryd, Hickman and McPheson, )
Monopolistic competition, oligopoly, and monopoly according to research are deemed as imperfect competition.
Monopolistic competition is considered imperfect because there are a lot of producers sell products that are distinquished
from each other and there are not feasible substitutes. The oligopoly is a when there are many small companied that take
up a large part of the market share. It is close to a monopoly but it is more than one company. A monopoly is normally one
company that controls almost all of the market.
In reviewing the video the object of this paper is to identify at least two articles that highlight and discuss two of the
biggest challenges facing financial managers today in these varied market structures. The two challenges reviewed were
the ability to staying in tune with market and cash flow and financial management.
Due to the ever changing market

The Deregulation Of The Electricity Market
What deregulation means
The term liberalization or deregulation generally refers to the "abolition of rights of monopolies, creating a competitive
market that guarantees fair prices for the consumers and efficient economic cost of supplying electricity. Three economic
conditions are a "prerequisite" to a competitive market in order to achieve a successful transformation from a highly
regulated monopolistic to a transparent and deregulated market:
– Free consumer choice: consumers must be able to freely choose their electric energy supplier after having compared
prices and services of competing electricity supply companies),
– Third party access (TPA): free and competitive market has to guarantee unimpeded access to transmission and
distribution networks for companies which do not own them. Otherwise, competition in the electricity market would not
be possible due to the physical characteristics and the natural monopolistic market design within the sector
– Unbundling: transmission and distribution networks have to be separated from the generation and retail business of
vertically integrated utilities
Description of the electricity market
First of all, it is to mention that the electricity sector is a comparatively complex one. This complexity and singularity can
be explained on the basis of three categories: constituent parts of the sector, physical characteristics and the specific
market design.
1) Constituent parts of the electricity sector
The electricity sector

Monopolies, Oligopoly, Monopolistic Competition, And...
Monopolies
When understanding the different types f structures it is important to know the different types of markets that there are.
Understanding barriers, buyers and sellers with knowing the market share and competition is important to understand
what barriers are occurring in the market. The different market structures are Monopoly, Oligopoly, Monopolistic
Competition, and Perfect Competition.
Understanding these different type of market structures helps to better understand what type of market is currently
occurring. A monopoly is when the companies are state owned and there is no other entry allowed into the market. An
oligopoly is when there are many buyers with few sellers which is what makes for tough competition. Monopolistic ...
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To do so would be to discourage the very effort and innovation that competitive markets are designed to encourage. On
the other hand, antitrust authorities have no reason to allow an enterprise to be an economic bully vis–a–vis outsiders and
innovators, just because it has received a position of market dominance through past exertions, whether economic or
political" (Baker, 1993). When we look at monopolies in today's current market in the telecommunications industry, many
people fear that AT&T will overtake the landline communications market and cause higher prices for all consumers. There
are rules that prevent AT&T from telling smaller landline companies that connection exchange rates on the lines will
double or triple if they go over AT&T owned or leased lines. This would cause AT&T to monopolize the market if they
were allowed to do this because it would cause higher prices and eliminate competition in the market. On the other hand
of the AT&T market, they also operate a cellular communications business which also was trying to buy T–Mobile
recently but was struck down in court as it would create a mobile monopoly. If AT&T was able to purchase T–Mobile then
they would have owned 43.3 percent of the marketshare, leaving Verizon behind them at 34.4 percent and Sprint at 15.5
percent with some other smaller carriers with the remaining percentage of marketshare. The

Oligopolies and Monopolistic Competition -...
Unit 5 – GROUP PROJECT Oligopolies and Monopolistic Competition – Grifols/Talecris Merger Rhonda D. Smith–
Payne AIU Online Contributing Group Members: Rhonda D. Smith–Payne Non–Contributing Group Members: Ashley
Battle, Latonia Jenkins, Betty Johnson, Crystal Williams Abstract The purpose of this report is to assess the impact of
mergers on industry, on consumers, and on society as a whole and more specifically, the Grifols/Talecris Merger in the
plasma–derived pharmaceutical industry. A complete description of the industry is discussed in depth. Part II discusses
arguments in support of the merger and opposing the merger. Grifols purchased Talecris in 2009, creating a merger which
did not come without strict ... Show more content on Helpwriting.net ...
As time passed, prices of the drug increased while supply diminished. Because of the characteristics that promote stability,
"relevant markets are characterized by highly inelastic demand, increasing the firms' incentives to coordinate because
even a small change in supply can have a large effect on price." (Commission, 2011) The plasma derived pharmaceutical
industry is led by a group of large and competitive firms. Besides Grifols/Talecris, many companies have gained success
and continue to sustain competiveness within the industry. CSL Corporate, incorporated in 1916, is headquartered in
Parkville, Victoria, Australia and has over 10,000 employees in 27 different countries. "The company is the only
manufacturer of influenza vaccines in the Southern Hemisphere." (Chhabra, 2010). "In 2007, the global revenues
generated by the top–10 biotech companies exceeded $45bn. Amgen, Genentech and UCB are good examples of leading
companies that have experienced strong sales growth in recent years. Principal drugs developed and marketed by the
leading companies include Aranesp, Mabthera and Keppra, each with blockbuster sales. Moreover, pipelines of the
leading biotech companies remain strong." (Visiongain, 2009) "The plasma–derived products manufactured and sold by
Respondents are life–sustaining and life–enhancing biologics indicated for, among other things, the treatment of primary
immune deficiency diseases, neurological conditions, severe

Monopolistic Competition : Competitive Market Structure
Perfect Competition
"Perfect competition is the market structure in which there are many sellers and buyers, firms produce a homogeneous
product, and there is free entry into and exit out of the industry"(Amacher & Pate, 2013)
Real Life Examples
A good example of perfect competition will be foreign exchange market because the currency is homogeneous. As well
traders will have access to different buyers and sellers. When buying currency its easy to compare prices.
Influences of High Entry Barriers in perfect competition
At this moment, firms experience no barriers of entry. ... Show more content on Helpwriting.net ...
Another example is U.S. Steel which was in the past but still apply as a monopoly. U.S. Steel was founded by JP Morgan
and Elbert Gary and incorporated 3 of the largest steel companies in the world Carnegie Steel, Federal Steel Company and
National Steel Company.
Influence of high entry barriers into monopoly monopolies normally maintain their position of dominance in a market
because it is too costly or difficult for potential rivals to enter the market.the three major barriers to entry this market are
legal restrictions, economies of scale and control of an essential resource.
Are competitive pressures present in markets with high barriers to entry? Explain.
There 's always competitive pressure in all markets. Competitive pressures are present in markets with high entry barriers.
The competition is when there is product quality competition between firms producing similar products and when viable
substitutes to the products a specific firm is producing are introduced into the market mostly of the time for less price , as
well we have to keep in mind that if the product is good people will still buy it even though is more expensive because
most of the time cheaper products arent good as the original.
Describe which market structure you would prefer for selling products. Explain why and support your answer with the
characteristic of the market.
The market I prefer

Advantages And Disadvantages Of Monopolistic Competition...
Firm's Viewpoint:
Nestle Nescafe Original 3 in 1 is a product which is categorized in monopolistic competition market. The firms that
involve in producing Nestle Nescafe Original 3 in 1 can obtain advantages and disadvantages of selling this products
under a monopolistic competition market.
The first advantage of being a monopolistic competition market is Nestle Company can differentiate its products from the
competitors like Nescafe Original 3 in 1 as differentiated products will attract more customers to buy. Nowadays,
customers like to look for the unique qualities of product such as the colour of the packaging, size or price and then they
will compare that products with other close substitutes. Next, the firm can set the price for the Nescafe Original 3 in 1
according to its standard or quality of this products due to the characteristic of price ... Show more content on
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The potential merit of monopolistic competition is incentives for firm to provide high quality of Nestle Nescafe Original 3
in 1 so customers will receive enough utility with it. Customers also agree with that Nestle Nescafe Original 3 in 1 is
tastier than other instant coffee. So, Nestle Nescafe Original 3 in 1 is a high quality of product. Next, differentiation of
Nestle Nescafe Original 3 in 1 will encourage customers to be selective in determining which products will be bought and
it may make customers loyal to the product of more variety of choices. Hence, customers have more options to choose
their own best choice. Moreover, customers also can increase the knowledge about a particular products like gaining an
understanding of the unique features and aspects of Nescafe because of the intensive in advertising and marketing. The
firms have to spend money to make its presence products in the market known. Thus, it can enhance the understanding of

What Is a Monopolistic Competition
What is Monopolistic Competition ? Monopolistic competition is a type of imperfect competition such that competing
producers produce similar yet not perfectly substitutable products . Monopolistic competition as a market structure was
first identified in the 1930s by American economist Edward Chamberlin, and English economist Joan Robinson. In short
run , a firm in monopolistically competitive market can behave like monopolies including by using market power to
generate profit. In the long run, however, other firms enter the market and the benefits of differentiation decrease with
competition; the market becomes more like a perfectly competitive one where firms cannot gain economic profit. In
practice, however, if ... Show more content on Helpwriting.net ...
Some products seems to be available everywhere , including internets. In contrast, some of the products requires some
search and travel . For example , the product of Apple Inc. Company . We can purchase the products at any retail shops or
through online purchase . These give convenient to the customers to purchase these goods . What is advertising ?
Advertising is a form of communication used to encourage or persuade an audience to continue or perform some new
action . Advertising messages are usually paid for by sponsors and viewed via various traditional media; including mass
media such as newspaper, magazines, television commercial, radio advertisement, outdoor advertising or direct mail; or
new media such as websites and text messages. Advertising is an important non price method for competition that is
commonly used in monopolistic competition . History of advertising It is difficult to imagine how advertising worked
before television, the radio and the Internet, but, in fact, advertising goes back to ancient Greece where people wrote " For
Sale" on the sides of their houses if they wanted to move. In the Middle Ages merchants hung wooden signs in front of
their stores to show people what they were selling. The invention of the printing press in the 1440s had a big effect on
advertising. Flyers and posters could be made very cheaply and by 1600

Case Study Of SSR Weighing Solutions
SSR Weighing Solutions :
S. S. R. Weighing Solutions , Arrangements has cut a corner amongst the most predominant names in the business sector
which was built up on 26 .02. 2003. The headquarter of this association is situated at Bengaluru. SSR Weighing Solutions
are involved in trading quality tested assortment of Platform Scale, Label Printing Scale, Weighing Scale and many more.
These products are highly appreciated amongst clients for their unmatched quality.
These products are widely utilized by various ventures like Sweet Bakery Scales, Iron and Steel Platform Scale, Receipt
Printing Scale and so on. Quality has been the unfaltering segment of their items since their inception.
To meet the high expectations of their clients, They deal in massive range according to the criterion of global quality.
Their shrewd representatives effectively handle the modern machines of their creation unit to specialty items with exact
measurements. The quality oriented section of the market greatly opts for our range that is tested on IP and BP standards.
They offer scales and POS printer with competitive price structure.
Under the sharp business keenness and taught methodology of their promoter, Mr. Shiva Shankara Reddy, the
organization has achieved the apex of ... Show more content on Helpwriting.net ...
The manufacture of steel is regarded as one of the key industries. It is a prerequisite for modern industrial
development.Large amounts of iron and steel is required for constructing bridges, rail tracts, railway rolling stock, ships,
vehicles, various machines, power plants, airports, etc.The basic need of Indian economy today is rapid industrialization.
As important industries like Railway locomotive, Ship Building, Heavy and Light Machine, Construction, etc. depend on
the availability of iron and steel, iron and steel industry accelerates industrialization and is, therefore, called the backbone
of all

Market Structures : Perfect Competition, Monopoly,...
Executive summary
The main purpose of this report is to introduce four market structures – perfect competition, monopoly, monopolistic
competition and oligopoly, and their determinations of price and output. It also discussed the possibility for firms to
generate profits in the short–run and/or in the long–run within these four market structures. It will be shown in the
discussion that both monopolistic and oligopolistic firms are able to generate profits in both short–run and long–run, while
firms in perfect competition and monopolistic competition could only make profits in the short–run but not in the long–
run. In the last section of the report, it provided a case of a Chinese monopolist in the railway service industry and talked
about its pricing strategy when studying the monopolistic inelastic demand curve.
1. Introduction
Identifying which type of market a firm is performing business in is important for a firm. Being in different types of the
market will affect a firm's ability to determine the price and thus generate profits. It also affects a firm's ability to make
profits in the long–run (Dietl 1998). In the case of China Railway Group Limited which will be discussed in this report, its
monopolistic power helps it to regulate the prices of railway tickets as well as to achieve profits in the long–run. Hence, it
is very vital and helpful for a firm to know which market it is in (Robert & Cave 1999), in order to understand its power to
set the monetary value. Having

Competition As A Monopolistic Competition
Competition in Smartphone Markets
Introduction
The competition in Smartphone Markets is a monopolistic competition, in which the products of each firm are
differentiated and the entry barrier is free. Products competing in the network industries have network externalities.
Accordingly, this essay will deal with the following aspects of the question. Initially, the concept of the monopolistic
competition is present. Follow by the idea of the network effect theory. The multi–sided market and the core business
strategies is analyzed and finally, the examination of the future of the smartphone competition is shown.
What is the 'monopolistic competition'?
Monopolistic competition refers to a competition where monopoly exists, and is neither a perfect competition nor an
oligopoly. As the market competition become intense, the distribution of resource becomes rational; therefore, the level of
competition in the monopolistic competition is more intense than it is in the oligopoly and perfect competition (Roberts et
al, 1977). Another reason caused this is that the products in the monopolistic competition can be easily replaced.
Nowadays, smartphones of different brands are similar on their appearance, details and even functions. The conditions for
a monopolistic competition to exist are as follows. Initially, the products in the competition have to be differentiated. The
differences can be in the quality of the products, the appearance, the label or the sales conditions.

Monopolistic Competition and Oligopoly
CHAPTER 12 MONOPOLISTIC COMPETITION AND OLIGOPOLY REVIEW QUESTIONS 1. What are the
characteristics of a monopolistically competitive market? What happens to the equilibrium price and quantity in such a
market if one firm introduces a new, improved product? The two primary characteristics of a monopolistically competitive
market are (1) that firms compete by selling differentiated products which are highly, but not perfectly, substitutable and
(2) that there is free entry and exit from the market. When a new firm enters a monopolistically competitive market
(seeking positive profits), the demand curve for each of the incumbent firms shifts inward, thus reducing the price and
quantity received by the incumbents. ... Show more content on Helpwriting.net ...
In equilibrium, each firm does the best it can, conditional on its competitors' prices. The equilibrium is stable because
firms are maximizing profit and no firm has an incentive to raise or lower its price. Firms do not always collude: a cartel
agreement is difficult to enforce because each firm has an incentive to cheat. By lowering price, the cheating firm can
increase its market share and profits. A second reason that firms do not collude is that such collusion violates antitrust
laws. In particular, price fixing violates Section 1 of the Sherman Act. Of course, there are attempts to circumvent antitrust
laws through tacit collusion. EXERCISES 1. Suppose all firms in a monopolistically competitive industry were merged
into one large firm. Would that new firm produce as many different brands? Would it produce only a single brand?
Explain. Monopolistic competition is defined by product differentiation. Each firm earns economic profit by
distinguishing its brand from all other brands. This distinction can arise from underlying differences in the product or
from differences in advertising. If these competitors merge into a single firm, the resulting monopolist would not produce
as many brands, since too much brand competition is internecine (mutually destructive). However, it is unlikely that only
one brand would be produced after the merger.

Contents
Question 1.1 – Monopolistic Competitors 3
Question 1.2 Non–price competitors 5
Question 1.3 – Substitutes & Compliments 6 Perfect substitutes as in the Chocolate Industry: 7
Perfect complement 8
Question 2.1 – Structuralist model of the inflation process 9
Question 2.2 – Inflation targeting approach 9
References 9
Question 1.1 – Monopolistic Competitors
Monopolistic competition is a market situation in which there is a large number of sellers and large number of buyers
whereas monopoly means a market situation in which there is only a single seller or supplier of goods and services in the
entire market and large number of buyers. South Africa's chocolate market is a monopolistic market situation since it has
got more than one ... Show more content on Helpwriting.net ...
extensive financial resources or expertise is required to enter a market. (MANCOSA, Economics Study Guide, 2010)
The impact of monopolistic competition upon the chocolate industry in South Africa is that; there may be flooding of
companies into the market and the firms' individual share of the market may be drastically reduced resulting in lower
profits or economic profits instead of the supernormal profits that firms so much desire in order to expand or grow. On the
other hand, monopolistic competition compels firms to invest in research and development in order to increase production
and operational efficiency a factor which support economic growth in the country. The quality of service within the
industry will be generally increased not mentioning the lower prices that firms will have to charge on the chocolates in
order to remain in business. The lower prices will then imply that a firm has to come up with other non–price competing
strategies such as product differentiation, advertising, promotions and so on.
Question 1.2 Non–price competitors
Non–price competition is a marketing strategy "in which one firm tries to distinguish its product or service from
competing products on the basis of attributes like design and workmanship" (McConnell–Brue, 2002, p. 43.7–43.8). The
firm can also distinguish its product offering through quality of service, extensive distribution, customer focus, or any
other sustainable competitive

Advantages And Disadvantages Of Monopolistic Competition
Introduction Monopolistic competition is characterized by large number of sellers and buyers, similar but differentiated
product, the easiness of enter and exit and each seller has the power of control over price. It is a competition that built up
by the market because there is a competition between all of the substitute goods. There are many firms in this competition
yet each firm only contributes a small total amount in the market shares. And this thing happen because the government
wants to ensure that there is no strategic games played among firms in the market, for instance price collusion. Since there
are so many firms, each of the firms are supplying only a small part for the market and no one can give a perfect
prediction of what might ... Show more content on Helpwriting.net ...
Monopolistic competition in a short run Monopolistic competition firms might maximize profit or minimize loss in the
short run. The firms that under monopolistic competition used this strategy as the production of output where the marginal
revenue is equal to the marginal cost (MR = MC).
A downward–sloping demand curve is formed in the form of monopolistic competition. If the average total cost is below
the market price, the firm is earning a profit. Meanwhile, if the average total cost is above the market price, the firm is
earning a loss. If the price is tangent to the average total cost, the firm is earning a zero profit (breakeven).
iii. Comparison between Monopolistic competition with Perfect competition Since there is no significant barriers required
to entry and exit in perfect competition market, it means that a firm can freely enter or leave the competition while in a
monopolistic competition, the market required few barriers to entry and exit. Even so, the number of barriers that required
in monopolistic competition is more than the total barriers that required in a perfect

Monopolistic Competition Of The Retail Industry : A Look...
Monopolistic Competition in the Retail Industry:
A Look at Fast Food
From an economic perspective, the retail industry can be identified as having four distinct forms of competition: perfect
competition, monopolistic competition, oligopoly, and monopoly. This paper shall examine those constructs briefly, and
then discuss in depth, the concept of monopolistic competition in the retail industry, using fast food as an example. There
are really limited examples of perfect or pure competition, whereby there is no one supplier big enough to have market
power sufficient to set pricing for a product that everyone is selling. By way of example, one might look to a wholesale
fish auction and the dozens of fishermen that present the same catch for auction at market each weekday morning. While
some fish may vary as to grade, like Ahi or Yellowfin tuna, there is more likely than not, no one fisherman who can drive
the market price for tuna on any given day. In this fairly pure competition construct, there can be many buyers and sellers,
and minimal barriers to entry or exit from the market. Monopolistic competition also features an abundance of sellers, as
in the example above, but not all products are necessarily identical, as might be the case with raw yellowfin tuna. Products
under this competitive construct may differ slightly or be perceived as being different, even though they actually are not.
Product differentiation could occur through quality, location, brand name, price

Monopolistic Competition in the Mobile Phone Market
Introduction In basic terms, a market structure regarded monopolistic is deemed to have some elements or components of
both competition and monopoly. In such a market structure, there exists a large number of entities offering for sale goods
that in addition to being substitutes also happen to be differentiated significantly. In this text, I highlight the mobile phone
market monopolistic competition. Further, I discuss how such a market would be impacted by both an increase in the price
of an input regarded important and a decrease in the demand of mobile phones. Part 1: A Description of Monopolistic
Competition in Mobile Phone Market In the opinion of Baumol and Blinder (2011, p. 235), "monopolistic competition is a
market structure characterized by many small firms selling somewhat different products." The authors in this case further
note that the output of each entity is small in comparison to the market's aggregate output of competing but closely related
products. With that in mind, the mobile phone market exhibits some key characteristics of monopolistic competition. In
this market, customers in need of mobile phones are presented with a wide range of options to choose from. For instance,
a customer who enters a mobile phone handset shop has the option of purchasing a Motorola, Nokia, Samsung,
Blackberry or even an LG handset. All these products despite being closely related are also largely differentiated. As
Tucker (2010, p. 268) notes, "the key feature of

Monopolistic Competition and Efficiency Recall that: productive efficiency is P= min ATC Allocative efficiency is P=
MC I. A monopolistic competition industry has neither productive nor allocative efficiency A. Marginal revenue curve
will never coincide with D=AR=P in monopolistically competitive market, Demand is relatively elastic. Products are
somewhat substitutable. B. Firms produce at a point where P>MC, meaning that resources are underallocated; not
allocatively efficient C. Firms do not produce where P= min ATC; therefore, no productively efficient D. In the long run,
MC industries will only earn a normal profit. P= ATC (but not minimum ATC!) E. This is also caused by relative ease of
entry and exit o When ... Show more content on Helpwriting.net ...
The firms in monopolistic competition will DIFFERENTIATE their products and make them more appealing to the
customers in order to maximize their profits. Easy Entry and Exit: In the SHORT RUN, a firm may obtain economic
profits or losses. However, since there are little barriers from preventing companies to enter or leave the industry, in the
long run, the firms will only obtain normal profits Remember: entry eliminates profits; exit eliminates losses! Advertising:
A unique feature of a monopolistic competitive market is that there are product differentiations. Therefore, companies rely
on advertising to flaunt their products and try to get consumers to buy their product over another. Goal of product
differentiation and advertising (non price competition) is to make price less of a factor in consumer purchases and make
product differences a greater factor. A successful advertisement would shift the firm's demand curve to the right and make
demand more inelastic. Some examples of non–price competition o store loyalty cards o Banking and other financial
services o Home delivery systems o Child services o Extension of opening hours o Internet shopping for customers o
Warranties Monopolistic Competitive Industries: Shoes

`` Rent Seeking And The Marking Of An Unequal Society ``...
Modern Americans always appeal for freedom, as it is stated in the national pledge that the U.S. is "one nation, under god,
indivisible, with liberty and justice for all". Many civilians are chasing freedom for freedom, yet most of them need
constraints and guides. In "Rent Seeking and the Marking of an Unequal Society", Joseph E. Stiglitz discusses the
inequality created by monopolistic businessmen and suggests that American government need to regulate the economy
and trading system. He defines some of those monopolists as rent–seekers who do not create new profits into the society,
but take advantage over others to acquire wealth. Tim Wu, the author of "Father and Son", talks about the monopolies
within information world – the competition between Apple and Google. Apple first "opened" personal computing to
individuals under the inspiration of Steve Woznaik, but turned into an exclusive company when Steve Jobs introduced
"closed" Macintosh. Then Jobs consolidated this enclosure through iPod, iPhone, and iPad. Google, as the "son" who
focuses on Web directing, keeps the openness of Internet information by building a "searching" web system. However,
Google does not open its searching engine program to the public. Apple and Google are creators and rent–seekers of
information world at the same time, because they do not really produce entirely new technology. Instead, they build their
companies on the premise of the previous innovations and improve these innovations by adding

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