Reference no: EM131687393

How is this a good example of monopolistically competitive?

"An example for a monopolistic competitive industry is the jewellery industry. The high end jeweller markets compete providing products such as high class or top quality cuts in gemstones, diamonds or gold. The perception with the products such as rings for example is high expense high value is what a customer will be wanting. Jewel laid rings can be found at department stores or pawn stores for cheaper value but the perception tied to those is the quality is sacrificed when it may actively be the same product as exampled with the milk in the episode 29 of the course work. a JC Penny engagement ring may not equate to a Zales engagement ring though they may be the exact same style.

One of the biggest factors in determining a monopolistic competition boils down to the perception of the consumer and whether they determine if a products value is equitable or if the substitute is sufficient if available. Two products could essentially be the same thing but the consumer will be convinced they are different based on product packaging or advertisement. Within the military, Coach and Michael Kohr purses and products had a monopolistic competition for several years amongst women because they can be purchased at the base exchange where a good majority of service members and dependent shop weekly and perceived them to be at a more affordable price. There are still other competitors as other suitable products with slight differences but the name brand association allows them to step ahead in the competition.

Pharmacies are another sensible monopolistic competition, we know of the popular Walgreens and CVS as well as how most grocery stores or superstores like Walmart have them as well but the competition is now online with the enabled home delivery of prescriptions"