Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The very name of this market type suggests that it is a combination of the monopoly and competitive firms. The characteristics of such a market are:
1. There exists large number of firms in the industry.
2.There is product differentiation. That is, the products of the firms are close substitutes of each other. The product of each firm has a brand name which marks the difference in quality, packaging or reputation. The amount of monopoly power a firm possesses depends on how successfully it can differentiate and propagate its brand.
3. Free entry and exit of firms from the industry is allowed.
4. Decisions are taken by the firms independently.
The model of monopolistic competition was developed by Chamberlain. He extended the ideas of monopoly and competition to a group of firms dealing with class of product. He first analyzed the group assuming that all the firms had uniform cost and demand. He then considered what would happen if diverse conditions existed.
Therefore, under monopolistic competition the optimal price is higher and the level of output could be lower than under perfect competition. The profits of the firms may or may not be higher because of the expenditure required to maintain the degree of monopoly power. Chamberlin argues that monopolistic competition will not necessarily bring higher profits to the marginal firm in the industry but all the existing firms will make normal profits.
why use GNP in macroeconomichs analysis
Model in economics is the permanent income hypothesis, which basically states that a household''s expenditures will not react to a change in income unless that change in income is
Types of Regional development financing arrangements: Regional development financing arrangements have been of three basic types. The oldest and best-developed type is mul
question #Minimum 100 words accepted#History of cobweb theory
assignment
Mikes' preferences for consumption and leisure may be represented by the Utility function: u(C, L) = ( C-200)*(L-80) . His marginal utilities of leisure and consumption are (C-200
what are the main properties and assumptions of indifference curve
electron configurations
periodic table
Differentiate between oscillation and damp cobweb model
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd