Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The very name of this market type suggests that it is a combination of the monopoly and competitive firms. The characteristics of such a market are:
1. There exists large number of firms in the industry.
2.There is product differentiation. That is, the products of the firms are close substitutes of each other. The product of each firm has a brand name which marks the difference in quality, packaging or reputation. The amount of monopoly power a firm possesses depends on how successfully it can differentiate and propagate its brand.
3. Free entry and exit of firms from the industry is allowed.
4. Decisions are taken by the firms independently.
The model of monopolistic competition was developed by Chamberlain. He extended the ideas of monopoly and competition to a group of firms dealing with class of product. He first analyzed the group assuming that all the firms had uniform cost and demand. He then considered what would happen if diverse conditions existed.
Therefore, under monopolistic competition the optimal price is higher and the level of output could be lower than under perfect competition. The profits of the firms may or may not be higher because of the expenditure required to maintain the degree of monopoly power. Chamberlin argues that monopolistic competition will not necessarily bring higher profits to the marginal firm in the industry but all the existing firms will make normal profits.
Determinants of Private Demand - Non-Monetary Benefits Social status associated with university degrees is a determinant of investment decisions in higher education in the cas
opportunity cost
The Acme Bakery in the seaside resort town of Malvino sells freshly baked bread to two categories of consumers: residents of the town and tourists. The weekly demand from touris
Materials Requirements Calculations - MRP System MRP is a computer-based 'engine' which carries out calculations in order to determine: What is needed, and When i
Q. Explain Nominal GDP? Nominal GDP: Nominal gross domestic product measures total value of all the services and goods produced and traded for money in the formal economy, eval
Consider the model of corruption explored by Shleifer and Vishni’s where there is one government-produced good X. There is a demand for that good described by the inverse demand eq
meaning of economics laws
would a rational producer be concerned with the average or marginal product of an input in deciding whether or not to hire the inputs?
under which market structure does the banking sector fall?
what are he uses of a balance of payement
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd