Question

Assume you want to move your business you are working in right now from a monopolistic competitive to a monopoly, what would be some of the selling factors you would present to the buyers to convince them with the higher prices?

Answer 1

Monopolist is a singel seller whose products have no close subsitutes. There are significant barriers to entry and the monopolist has no competitors.

Significant selling factors for a monopolist would be

1. Quality of the product. The monopolist can convince the consumers of the good quality which would command a higher price.

2. No close substitutes. The product has no close substitutes, for exampe, Apple's iphone, Windows operating system. Highlighting the uniqueness of the product is a selling feature.

3, A monopolist can invest heavily in innovation and create new designs, new features which would convince people to purchase the products.