Identify a firm which operates in monopolistic competitive environment and a firm which operates in an oligopoly environment. Explain how you concluded the firm was monopolistic competitive or an oligopoly.
Then describe what are the challenges to profits faced by each firm? Which firm is likely to have a much higher rate of return? What challenges to profits arise due to supply chain and intermediary consumers such as processor and distributors.
There is a variance between the operations of Monopoly and Oligopoly market. The monopoly has complete possession on the product and we will not see any competitor in the market. It purely single ownership expand the operations to the all corners under the same roof. There is a lot of returns in the way of profit due to no competition in the market. However, the consumers have no choice to choose the brand or price regarding this product in the market.
The market of oligopoly has some variance to compare with monopoly market. Here, the small producers or sellers shared the market due to reducing the competition of the product. Here, the intermediary persons of the product carriers have benefitted little compared to monopoly market and also the consumer has some space to choose in the price of the respective product.
In overall comparing of both monopoly vs oligopoly market, the profits more attained had monopoly compared to oligopoly. Because there are no competitors in monopoly so the price decision always had with producers of the product. The rate of returns also attained maximum to the monopoly market. In oligopoly had attained less rate of return compared to monopoly market due to the price stick with reasonable or quoted with less price. The overall profit goes to monopoly market but intermediary consumers have no choice to get good profits, however, it is possible in the oligopoly market. After a brief comparison between the monopoly and oligopoly, the maximum profits and rate of returns acquired by the monopoly market.
Identify a firm which operates in monopolistic competitive environment and a firm which operates in an...
Identify a firm which operates in monopolistic competitive environment and a firm which operates in an oligopoly environment. Explain how you concluded the firm was monopolistic competitive or an oligopoly. Then describe what are the challenges to profits faced by each firm? Which firm is likely to have a much higher rate of return? What challenges to profits arise due to supply chain and intermediary consumers such as processor and distributors.
Identify and describe the conditions you observed for a specific firm that operates in Monopolistic Competition or a Differentiated Oligopoly who differentiates their product. You should also provide brief market analysis including the state of the market before and after the differentiation, as well as the observed changes that resulted. Specifically, the following questions should be addressed: What type of market structure was the product or service in when the differentiation occurred? What is the differentiation?Describe specifically what the differentiation...
What market structure best describes the environment within which an healthcare organization(hospital) operates? What challenges and opportunities would arise from higher and lower degrees of government intervention?
What market structure best describes the environment within which your organization operates? What challenges and opportunities would arise from higher and lower degrees of government intervention? (an Elevator Company)
A firm operating in a purely competitive environment is faced with a market price of $250. The firm’s total cost function (short run) is as follows: TC = 6000 + 400Q – 20Q2 + Q3 Should the firm produce at this price in the short run? If the market price is $300, what will total profits (losses) be if the firm produce 10 units of output? Should the firm produce at this price? If the market price is greater than...
a.) How is a monopolistic firm different from a perfectly competitive firm? Which firm will have a more efficient equilibrium outcome? b.) What is the difference between marginal product and marginal revenue product of a resource?
QUESTION 1 Which of the following is not a characteristic of the monopolistic competition market structure? Many sellers, each small in size relative to the overall market. Few sellers. Differentiated product. Easy, low-cost entry and exit. QUESTION 2 Which of the following is the best example of a monopolistic competitor? Wheat farmers. Restaurants. Air Canada. General Motors. QUESTION 3 In the long run, both monopolistic competition and perfect competition result in: a wide variety of brand-name choices for consumers. an...
1l. If a monopolistically competitive firm is incurring losses, then at the profit-max a price is above the average total cost curve. b. price is below the average total cost curve c. price is equal to marginal revenue. d. price is less than marginal revenue. e. average total cost equals marginal cost. Both competitive and monopolistically competitive firms a. can maximize profit by raising price. b. cannot control or set their own price c. can maximize profit by producing to...
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In the short run, a firm in a monopolistically competitive market operates much like what type of firm? U a perfectly competitive firm an oligopoly firm O a monopoly O a duopoly When we compare diagrams for firms in different market structures, what do we notice? For competitive firms and monopolistically competitive firms, the revenue curves are similar but the cost curves are quite different. For competitive firms and monopolistically competitive firms, the cost curves are...
a) Why is a monopolistically competitive firm less efficient than a perfectly competitive firm? It produces at an output that is lower than its minimum efficient scale (MES) It earns positive economic profits in the long run It deters entry of new firms by putting up entry barriers All of the answers are correct b) Suppose a monopolistically competitive firm has MC=4Q+5. Its demand is P=145-3Q and marginal revenue is MR=145-6Q. What is its profit-maximizing output level? 17 14 16...