Question

How does economic rivalry take place in monopolistic competition? Describe the different aspects of product differentiation...

How does economic rivalry take place in monopolistic competition? Describe the different aspects of product differentiation and price competition.

Homework Answers

Answer #1

Monopolistic competition is a form of market structure in which there are a significant number of firms that produce similar but differentiated products— maybe 20, 50, or more. Because of low entry barriers, joining and leaving monopolistically competitive industries is relatively easy for businesses. The economic competition between competing firms is often strong in monopolistically competitive industries. Differentiation of goods is critical for companies operating under monopolistic market conditions. Industries often use non-price competition to differentiate between their goods and similar products. One way to do this is through ads to build brand loyalty.

Throughout advertising and economics, brand differentiation and cost discrimination are two techniques. Brand differentiation is the method of separating the goods and services of one company from the goods and services of another company. Price discrimination, on the other hand, is a technique for separating costs for the same goods and services.

Horizontal distinction of the product distinguishes a product based on one of the product's characteristics; however, customers can not differentiate which product has a higher quality. Vertical brand distinction is also dependent on one of a product's characteristics, but customers can discern which product is of higher quality. Simple product differentiation is based on a number of characteristics defining a product. Price discrimination takes place when the same goods and services are offered from the same business at different prices. Unlike product differentiation, the purpose of price discrimination is to pay different customers for the same products at different prices. Like product differentiation, the aim of price discrimination is not to differentiate the product from others.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Choose the market structures that have a product differentiation. Monopolistic competition and monopoly Monopolistic competition and...
Choose the market structures that have a product differentiation. Monopolistic competition and monopoly Monopolistic competition and oligopoly Monopoly and oligopoly Perfect competition and monopoly
Product differentiation is a defining characteristic of perfect competition. agricultural markets. goods industries. monopolistic competition.
Product differentiation is a defining characteristic of perfect competition. agricultural markets. goods industries. monopolistic competition.
How important is product differentiation in a monopolistic market?
How important is product differentiation in a monopolistic market?
How does rivalry in the marketplace relate to the latter’s economic competitiveness?
How does rivalry in the marketplace relate to the latter’s economic competitiveness?
A. What is meant by production differentiation? What does this result in imperfect competition? B. How...
A. What is meant by production differentiation? What does this result in imperfect competition? B. How can international trade be based on product differentiation?
Step 1 Read the following scenario. Imagine a firm in monopolistic competition. A firm in monopolistic...
Step 1 Read the following scenario. Imagine a firm in monopolistic competition. A firm in monopolistic competition produces a product that you are familiar with, such as clothing and food. A monopolistic competition is a market in which: many firms compete each firm produces a product that is slightly different from products of other competing firms each firm competes on product quality, price, and marketing each firm is free to enter and exit the market Step 2 Use the scenario...
Describe the concept of inelasticity as it impacts on the development of a market-based or competition-driven...
Describe the concept of inelasticity as it impacts on the development of a market-based or competition-driven price for a manufacturing-related semi-finished or sub-assembly product. What effect does the supplier of such a product using differentiation value have on this type of elasticity? What role, if any, does product differentiation have on the Economic Value of such a product? Explain your answer.
35. With monopolistic competition, society is willing to pay more for the product than it costs...
35. With monopolistic competition, society is willing to pay more for the product than it costs society to produce it. a.True b.False 36. Why does the short-run equilibrium situation usually not last long? a.Government regulations are applied in the long run. b.Higher taxes are enforced in the long run. c.Firm downsizing happens in the long run. d.Entry and exit happen in the long run. 37. Which of the following types of efficiency are monopolistically competitive firms able to achieve? a.surplus...
Under Monopolistic Competition, goods are no longer homogeneous. How does the monopolistically competitive equilibrium compare to...
Under Monopolistic Competition, goods are no longer homogeneous. How does the monopolistically competitive equilibrium compare to the pure competition equilibrium?
What does realizing virtues mean in Confucianism? Describe the different aspects of that.
What does realizing virtues mean in Confucianism? Describe the different aspects of that.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT
Active Questions
  • An Engineering consultant appointed on the construction of a Bridge site decided to conduct the Plate...
    asked 18 minutes ago
  • Create a program in java using if statements Suppose the WIFI of a client is not...
    asked 28 minutes ago
  • W Mart, one of major retailers, reported cash flows and earning: Comprehensive income) for the firm...
    asked 40 minutes ago
  • Parker Hi-Fi Systems Parker Hi-Fi Systems, located in Wellesley, Massachusetts, a Boston suburb, assembles and sells...
    asked 40 minutes ago
  • Manufacturing companies strive to maintain production​ consistency, but it is often difficult for outsiders to tell...
    asked 51 minutes ago
  • There is a difference between statistical probability and theoretical probability. The theoretical probability of rolling a...
    asked 58 minutes ago
  • In a small struggling technology company, the employees are aware that processes and structures must change...
    asked 1 hour ago
  • On June 30, 2018, Blue, Inc. leased a machine from Large Leasing Corporation. The lease agreement...
    asked 1 hour ago
  • You are on a mountain and see three other mountain tops that create a polygonal valley....
    asked 1 hour ago
  • Congressional Ethics: Identify one (1) member of Congress who has been charged with ethics violations in...
    asked 1 hour ago
  • A study had a statistically significant finding that walking 1 mile everyday will reduce the BMI...
    asked 1 hour ago
  • What is meant by electrical equivalent of heat. (define ) What is electrical energy and what...
    asked 1 hour ago