Question

Why can’t we use supply and demand analysis to study the market for Papa John's Meat Lover’s Pizza?.

Answer 1

Sol :

The reason why we can’t we use supply and demand analysis to study the market for Papa John's Meat Lover’s Pizza is because the competitive Structure for Papa John's Meat Lover's Pizza is monopolistic competition because the brand contenders or rivals of Papa John's, for example, Pizza Hut and Domino's Pizza are the Large number of dealers that sell pizza with similar features and customers benefit both from equal amount and the prices are not that different from each brand so Papa John's Pizza needs to more advertising in order to be different from its rivals.

While various pizza chains exist in many areas, the differentiated nature of these firms like Papa John's products grants them to charge costs over the marginal cost.And product differentiation is a marketing practice that contrasts one item from another. Companies do this since they need to highlight their product/item qualities and differences to the buyers.

In product differentiation differentiating an item from another doesn't need to be new or totally unique it simply should be separate from its adversary for the endurance of the item in the market. Product differentiation can be in the form of product advancements, product structure/design, client experience, product bundling, and other applicable things to make it not quite the same as the competitor's product.