Research Paper On Monopolistic Competition

Economic analysis of a monopolistically competitive industry is more complicated than that of pure competition because:

An oligopolistic market is one that has several dominant firms with the power to influence the market they are in; an example of this could be the supermarket industry which is dominated by several firms such as Tesco, Sainsbury’s, and Waitrose etc... Furthermore an oligopolistic market can be defined in terms of its structure and its conduct, which involve various different aspects of economics.

Monopolistic competition involves many firms competing against each other, but selling products that are distinctive in some way. For instance, stores that sell different kinds of apparel; eating places or markets that sells a variety of food. You can even think about sporting goods and alcohol. These are items that may be similar to a certain extent, but totally different in terms of perception because of the brands, and how they are marketed. When merchandise is unique, firms can have a mini-monopoly on a certain style or a certain brand. However, the companies that make these products have to compete with other brand names. The term monopolistic competition captures this mixture of mini-monopoly and tough competition.

Monopolies played a big factor in the 1870’s to 1914. These originally came to the United States with the colonial administration. Monopoly’s refers to a market structure whereby there is only a single firm operating in an economy. Companies though normally characterized by the absence of competition in the market.

A stock market is the network of buyers and sellers. It is also a stock exchange. The Dow Jones Industrial Average is an example of a stock market.

In a perfect competition substitutes are abundant and to stay competitive one will need to offer the lowest possible price. In monopolistic competition, the differentiation is based on quality and competitive advantage. Substitutes are not as readily available so a consumer will likely decide on the better value that comes with better quality.

The monopolistic rivalry business structure incorporates numerous organizations offering somewhat separated items. There is a simple passage into the business sector by new firms over the long haul, and the organizations are sufficiently extensive to impact the aggregate supply. There are likewise various measurements of rivalry, including dissemination outlets, promoting, and item characteristics. The peripheral expense will be not exactly the cost at its benefit amplifying yield level. As indicated by the content, a monopolistic contender can't make long-run benefit (Colander, 2013).

Monopolies are price makers and the products offered are not sensitive to changes in the market. The demand curve of a monopoly is not elastic, as is such in a perfectly competitive market. The monopolistic demand curve is the same as the curve for the industry since there is only one firm within the industry. This allows the franchise owner to maximize profits by setting the price of tickets and concessions at an amount that creates the most revenue. Consumers will pay the price, if they want to attend a particular sporting event, no matter how outrageous the price. This price setting is allowable, because unlike perfect competition, there are no substitutes. Cities may have two or three teams of different types of sports (i.e. baseball, hockey, football), but few cities have more than one professional team of the same sport.

Monopoly isn’t just a board game where players move around the board buying, trading and developing properties, collecting rent, with the goal to drive their opponents into bankruptcy. However, the game Monopoly was designed to demonstrate an economy that rewards wealth creation and the domination of a market by a single entity. Monopoly and Oligopoly are economic conditions where monopoly is the dominance of one seller in the market and an oligopoly is a number of large firms that dominate in the same industry. Even though monopoly and oligopoly coexist in the same market, they do have some differences. In many cases, monopolies arise because the government has given one person or firm the exclusive right to sell some good or service. Since monopolistic markets are controlled by one seller, the seller has the power to set prices too high amounts. Monopoly companies give consumers limited choices on what to pay and what to choose from what is supplied. Oligopoly is consumer friendly because it promotes competition amongst sellers with moderate prices and numerous choices in products. Examples of oligopoly area wireless carriers, beer companies, and different types of media like TV, broadcasting, book publishing and movies. This essay will discuss descriptive section on how monopolies and oligopoly apply to microeconomics; it’s historical backstory, the government involvement with handling monopolies and oligopoly, how it applies to college life and the overall importance to

In practice, pure monopolies are very rare. For instance, a supermarket may be the only food supplier in a particular town, but if it raises its prices and retains too much of a profit, a competitor may enter the space. Even the threat of serious competition entering the market forces the existing firm to act conscionably and differently from how it would act otherwise. (Monopolies & Oligopolies) For example Wal-Mart is not only a clothing store but it also a grocery store. Another place that is similar to Wal-Mart is Meijer and Wal-Mart is significantly cheaper than Meijer this is why many people such as myself shop at Wal-Mart versus Meijer.

Monopoly is a term to describe an industry where a seller of a product or service does not have a competitor offering a close substitute. The word is derived from the Greek words monos (meaning one) and polein (meaning to sell). Rarely does a pure monopoly exist. In a pure monopoly there is only one company making and selling the item in question; however there can also be the situation where there is one company who has the bulk of sales and the other firms in the same market have little or no impact on the overriding company. Due to lack of competitors, the monopoly company has control of the supply and price of the good or service, unless there is government intervention. The monopoly will

The fast food industry has been growing dramatically during the last few years. For this reason, we should try to find out what are the several factors why fast food consumption keeps growing among young people and adults. Therefore, as we have seen, the popularity of fast food is spreading rapidly among many people due to the following three main reasons: good taste, convenient time, and price. Personally, working for a fast food restaurant for a brief moment in my life, I can attest to this. Marketing also plays a big part to more people eating fast food. It’s in our culture in America to expect fast food companies to market and strategize their ways to make us, the consumers, to buy more food and consume more food so they can make more profit. Especially now with commercials and social media. The fast food industry has thrived in the modern era. It’s thriving so much, the industry is growing faster than the U.S economy, at

•Monopolistic competition- When an industry contains many rival firms, each of which has a comparable but at least slightly different product. Restaurants, are an example, all serve food but of different types of food and in different sites. Manufacture costs are above what could be attained if firms sold equal products, but consumers have an advantage from the variety.

Something which is widespread and the only difference we make out is that they are more concentrated in a competitive market as compared with monopoly, is another way to describe Oligopoly. For sure competition is seen in the Oligopoly as well which leads to almost the same services or approximately the same prices on the same products with minor variations.

In India, fast food culture emerged in the decades after independence, starting from the 1950’s. Eating at home used to be a significant aspect of Indian culture, so the change was gradual. Over a period of time, with a growth in the number of nuclear families, economic growth and increasing per capita income as well as globalization, fast food culture gained prominence. Women were shifting from their conventional roles of managing the household and taking care of the children. With growth in