#monopolistic competition

[think-and-write]

Monopolistic competition is a type of industry market in which many enterprises sell differentiated products (unique in their industry and have some qualities that consumers value), as well as exercise control over the price of the goods they produce.

[desklib254]

Monopolistic competition arises when many companies offer rival products or services that are similar but not exact substitutes.

Numerous businesses compete on a monopolistic market by selling similar but marginally different products. In assessing the level of competition between openly competitive markets and full monopolies, such a scenario occurs.

[sbeniwal6]

Markets - Economics View

Markets – Economics View

Concept of Market

For an individual it would mean a shopping complex or a place where he/she can buy things. But, in economics, the concept of market is very different from this. It doesn’t refers to any geographical area where goods are sold and purchased. Instead, it refers to all such systems that bring the buyers and sellers in contact with each other to settle the sale and purchase of…

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[darsotadrees]

Economics MCQs (English) 171 to 175 (Price Discrimination, Monopoly & Monopolistic Competition)

[HDquiz quiz = “240”]

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[assignment-help-uk]

If you are a management student or a professional in the business field, you must have a clear idea about the different forms of market structure. Monopolistic competition and perfect competition are two forms of market structure. This blog will help you understand both of these structures and how they differ from each other.

[assignmentcrackers]

Financial Management Challenges

Financial Management Challenges The following video discusses the four types of markets: perfect competition, monopolistic competition, oligopoly, and monopoly.

Given the market structures as described in the video, identify at least two articles from the ProQuest database that highlight and discuss two of the biggest challenges facing financial managers today in these varied market structures.…

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[tuesday5econlive]

**NOTE: Audio may be low, please turn your system audio up if possible.** Economics is at play in my daily life. The simplest concept that I can think of is opportunity cost. Opportunity cost is the value of something that you give up in favor of a different option, This vs. That. After graduating high school, I had to face many different decisions. Attend a higher education institution (such as college or university for 4 years) or get a full-time job (earn salary and wages). I had to consider the cost of attending university with a potential long-run benefit versus the immediate benefit of a salary with added incentives. Then I had to decide between California State Universities, community college, or UCI. I realized that the opportunity costs of attending UCI outweighed the cheaper tuition of the other two options. These higher education institutions are all in monopolistic competition which means that there are many options for me to choose from, but each has its own unique experience and offering. In the case of UCI, the newly-announced esports initiative drew my attention and acted as an incentive for me to choose UCI versus other schools as there were now new opportunities for me to pursue a career in an industry that I have a great interest in. Higher education has a positive externality which means that the benefits are shared with the rest of society. Thus, UCI’s tuition is heavily subsidized by state funding through taxation which results in a cheaper tuition for me to pay. However, as a result of attending UCI, I still face trade-offs with paying tuition. For example, I have to take out loans in order to spend less up front which results in having to budget better and spend less on club and luxury goods (things that aren’t necessary for me to have). Club goods are goods that are excludable but non-rivalrous which means that I wouldn’t be able to have access to something that I didn’t pay for. For example, ever since moving to Orange County to attend UCI, I have been wanting to purchase a Disneyland Annual Pass, but I haven’t because of the cost of a pass and the opportunity costs associated with going to Disneyland instead of working or studying.

At the end of Spring Quarter, I was faced with a possibility of being academically disqualified from UCI. Knowing this, I went out to search for a full-time job opportunities as a back-up plan in the case that I would not end the quarter with a high enough GPA. As a result of my decisions to attend UCI and become an intern for the esports program, I received a job offer with outstanding benefits and a signing bonus incentive. I would have to start immediately before the end of the quarter and withdraw from UCI, even after paying for tuition and fees. Ultimately, I decided that the opportunity cost of finishing out the academic year and deciding to change my major outweighed the attractive job opportunity. 

I could spend countless hours explaining the various ways that I see economics at play in my life, but in essence, it’s at play in our every day lives whether we think about it or not. In my life in particular, taking this course has made me think more and relate the various principles and topics to my everyday life.

Nickolas Gasparyan #66359625

[holly-brookes-blog]

Microeconomics Phase 16

In perfect competition or a monopoly advertising may not be necessary. However oligopolies and monopolistic competition can benefit from advertising! The question is what advertising will achieve optimal results. Firms that produce and sell highly differentiated products(perfume, cereal, etc) tend to spend, on average, between 10-20 percent of their revenue on advertising. Industrial related firms however spend hardly any on advertisements. Many economists believe that advertising alters consumers perceptions of a commercial product. For example a coke commercial on tv has hardly any information in it, but everyone in the commercial is at a party with several friends laughing and being happy. Therefore they’re trying to sell an experience causing customers to think “if I drink coke, I can be happy like those people with partying with all their friends.” If you ask me, this is ridiculous. Yes, coke and pepsi taste different, several brands have a difference in quality. But ibuprofen and advil and remotely the EXACT same thing. You don’t need to spend an extra $5 on a sugar coated ibuprofen. Long story short, if consumers are gullible enough to fall into these ludicrous advertisements, more power to the company. I however will be saving my 80 cents getting kroger kidney beans as opposed to del monte. The other side of economists debate defends advertising. Many advertisements contain actual information, whoa! Often advertising offers information to consumers and thus can make better, educated decisions. Consumers(Like me!) who do view advertisements containing information can then take advantage of price differences. How exciting:) So this all being said I learned something new in relation to advertising. Which is most definitely the most intriguing part of the current chapter i’m on. Advertising can actually be a signal of quality. I had never considered this, perhaps it's settled into my subconscious. So to keep things simple i’m going to use the example Mankiw provided. Any other cheap college students out there appreciate cereal? Oh good. Consider General Mills and Kellogg's. They both come out with a new kind of breakfast cereal. So no they must decide if it is beneficial to spend assets on advertising. Kellogs decides they will, because they know their cereal tastes amazing, and if consumers try it once, they are likely to purchase it again(repeat sales, loyalty, etc). In other words, they are confident in their product. General Mills however fears that they will only lose money advertising because while consumers will buy it to try, it’s particularly tasty, thus it is highly unlikely anyone will purchase this product a second time. If this is the case General Mills should just go back to the kitchen and improve the recipe. Consumers know advertising costs companies a great portion of money, and if the company is willing to spend that much on something they believe it must be worth a shot for customers. Overtime consumers would learn to ignore cheap advertising and perhaps find brand loyalty(to kellogg's as opposed to General Mills).