Unit 8 Assignment: Oligopoly and Monopolistic Competition and Product Differentiation Name: - Course Number: - Section Number: - Unit Number: - 8 Date: - Problem Dr. Fine and Dr. Feelgood are the only two medical doctors offering immediate walk-in medical services in the town of Springfield. That is, they operate in a duopoly. Each doctor can charge either a high price or a low price for a standard medical visit. The accompanying matrix shows their payoffs, in profits per
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of different market conditions under which the firms produce and sell products in the market. The unit also elaborates upon various Forms of Market Structure such as Perfect Market and * Imperfect Market (*Monopoly, Monopolistic Competition and Oligopoly). The conditions and determination of price under various Forms of Market Structure have been discussed. The content based classroom activity has been suggested at the end. It will help in developing Critical Thinking & Analytical ability among students
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1) In monopolistic competition, there are a relatively large number of firms, not the thousands of firms as in pure competition. The monopolistically competitive firms produce differentiated products, not the standardized products of pure competition. Product differentiation means that monopolistic competitors engage in some price competition because they have some limited “price making” ability based on the less elastic demand for their particular product. This demand, however, is more elastic than
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on the basis of time, area and competition. Here we are going to see about Market Structures on the basis of Competition. On the basis of competition a market may be of following types. * Perfect Competition * Monopoly * Duopoly * Oligopoly * Monopolistic competition PERFECTLY COMPETITIVE MARKET In a Perfectly Competitive Market we have a large number of small firms producing identical products. As the number is large, each firm has no market power. That is they are driven by their
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monopolistic competition market should find it easy to find a similar alternative in their local area (Corcelli 2006). This differs from monopolies and oligopolies. A monopoly market is only one single seller. An oligopoly market is dominated by a small number of larger companies selling slightly different goods. Both a monopoly and oligopoly market structures only have a small number of competitors and still perform product differentiation, but they rarely compete on prices. It is also different
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Market structure is defined by economists as the characteristics of the market. It can be organizational characteristics or competitive characteristics or any other features that can best describe a goods and services market. The major characteristics that economist have focused on in describing the market structures are the nature of competition and the mode of pricing in that market. Market structures can also be described as the number of firms in the market that produce identical goods and services
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Differentiating Between Market Structures ECO/365 April 13, 2015 Benjamin Zuckerman Differentiating Between Market Structures Coca-Cola Company is one of the world’s leading soft drinks manufacturers. Since its creation, the company has been growing constantly. Today Coca-Cola manufactures more than 500 brands of products sold in more than 200 countries all over the world. Coca-Cola’s main competitor is Pepsi. Therefore, the two companies make up a duopoly where only two companies dominate
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Market Structures Greg Marchiorlatti ECO/365 March 26, 2015 Rick Pretzsch Market Structures The Dodge Motor Company has been around since 1914 when it was opened by John and Horace Dodge. The Dodge Ram has been their largest selling truck since its inception in 1933. When the company hit hard times in the early 2000s it was decided that the Ram would splinter off of Dodge and be its own entity. This was done to allow for more research and development, as well as it’s the proceeds from
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1. In oligopoly, each firm is acutely aware of the production and marketing decisions of all competitors and carefully considers the potential competitive reactions in all decisions. Discuss whether firms in other market structures consider the potential reaction of competitors when making important marketing decisions. In other structures firms do not consider the reactions of rivals. A monopoly is a single firm structure. In monopolistically and perfectly competitive markets the firms are independent
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consumer has many comparable alternatives to choose from. If a firm decides to raise prices, a consumer in a monopolistic completion market should find it easy to find a similar alternative in their local area. This differs from monopolies and oligopolies, which only have a small number of competitors. These market structures still perform product differentiation, but they
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