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In a monopolistic competition, the prices are determined by the demand and supply for that good. However, since each good is branded and distinguishable from each other, each firm can take non-price measures (marketing) to attract more customers.
Hence, price is determined by the market while the quantity, although determined by market to some extent, still relies on the marketing measures of each individual firms.
What else can I help you with?
What is a market structure with a large number of sellers who makes differentiated products is called?
Monopolistic competition
Why firms choose non-price competition over price competition?
Imperfectly competitive firms engage in none-price competition (like advertisement). For example, in monopolistic competition, each firm has their own customers(by establishing some consumer loyalty), modest change in the output price of any single firm has no perceptible influence on the sales of any other firm, i.e one firm can raise price without losing all customers. Therefore, price competition makes no sense.
Why do monopolistic competitor operate at excess capacity?
Monopolistic competitors operate at excess capacity to discourage new firms from going into the industry, i.e, to deter entry. Operating at excess capacity means a firm produces large quantities of goods and at lower prices. This makes it difficult for newly established firms to compete, thus ensuring that the incumbent firm maintains its monopolistic position in the market.
How can competition impact on a new business?
Competition can be a positive or negative thing for any new business. Positive wise.. it makes them known, and gets their name spread around. And on the other hand, negative.. if their competitor makes it bigger then they lose their customers.
In the US what group actually makes most of the economic decision?
The Consumers (NOVANET)
What is a market structure with a large number of sellers who makes differentiated products is called?
Monopolistic competition
Why firms choose non-price competition over price competition?
Imperfectly competitive firms engage in none-price competition (like advertisement). For example, in monopolistic competition, each firm has their own customers(by establishing some consumer loyalty), modest change in the output price of any single firm has no perceptible influence on the sales of any other firm, i.e one firm can raise price without losing all customers. Therefore, price competition makes no sense.
What makes a competition unfair Write paragraph?
Dishonesty and the fraudulent means is what makes the competition unfair.
Who makes the decision in a case the judge or guardian ad litem?
The judge is the one who makes the decision.
What quantity in volume makes a metric ton?
To answer the question, the density of the material of this quantity should be known!!!!!!
Why do monopolistic competitor operate at excess capacity?
Monopolistic competitors operate at excess capacity to discourage new firms from going into the industry, i.e, to deter entry. Operating at excess capacity means a firm produces large quantities of goods and at lower prices. This makes it difficult for newly established firms to compete, thus ensuring that the incumbent firm maintains its monopolistic position in the market.
What factors determine who makes up a particular audience?
quantity supplied, quantity demanded and the cost of production
What make a competition unfair?
Fraudulent means and dishonesty over rivals is what makes a competition unfair.
Can competition makes children more aggressive?
Yes competition can make children more aggressive.
What are the release dates for A Citizen Makes a Decision - 1954?
A Citizen Makes a Decision - 1954 was released on: USA: January 1954
Who has final say whether a prisoner gets paroled the victim or the judge who sentenced him?
Neither makes the decision, the parole board makes the decision, but the victim's statement can impact their decision.
What actors and actresses appeared in A Citizen Makes a Decision - 1954?
The cast of A Citizen Makes a Decision - 1954 includes: Arden Booth as Narrator
