0
Monopoly means that there are no competitor for your product or servises
Wiki User
∙ 13y ago
Wiki User
∙ 13y agoThe major difference between a monopoly and a competitive firm is the monopoly's ability to influence the price of its output.
Wiki User
∙ 13y agoThe truth is that the same motives drive the monopolistic firm and the competitive firm: Both strive to maximize profits.
Xio Gonz
Monopolistic competition involves slightly differentiated products while monopoly involves a single product.
Add your answer:
Earn +20 pts
Is it true the demand curve of a monopolistic competitive firm is more elastic than that of a pure monopolist?
YES
Characteristics of a monopolistic competitive market?
one firm which sells a good price set by that firm hard for other firms to enter market
What happens to monopolistic competitive firm that begins to charge an excessive price for its product?
Consumers will substitute with a rival's product.
Dominos fast food firm is a monopolistic firm or not?
it is not a monopoly firm
What is monopolistic competition and perfect competition?
Three conditions characterize a monopolistic & Perfectly competitive market. First, the market has many firms, none of which is large. Second, there is free entry and exit into the market; there are no barriers to entry or exit. Third, each firm in the market produces a differentiated product. This last condition is what distinguishes monopolistic competition from perfect competition. In perfect competition in addition to the prior two characteristics the firms produces similar products.
Is it true the demand curve of a monopolistic competitive firm is more elastic than that of a pure monopolist?
YES
Characteristics of a monopolistic competitive market?
one firm which sells a good price set by that firm hard for other firms to enter market
What happens to monopolistic competitive firm that begins to charge an excessive price for its product?
Consumers will substitute with a rival's product.
Dominos fast food firm is a monopolistic firm or not?
it is not a monopoly firm
What is monopolistic competition and perfect competition?
Three conditions characterize a monopolistic & Perfectly competitive market. First, the market has many firms, none of which is large. Second, there is free entry and exit into the market; there are no barriers to entry or exit. Third, each firm in the market produces a differentiated product. This last condition is what distinguishes monopolistic competition from perfect competition. In perfect competition in addition to the prior two characteristics the firms produces similar products.
What is the disadvantage monopolistic competition?
competitive advertising can be wastefull
What are two types of competitive markets?
Monopolistic competition and oligopoly
What companies in the Philippines belong to monopolistic competitive market?
There are many companies into he Philippines that belong to a monopolistic competitive market. These companies include Ayala, SM Prime Holdings and the San Miguel Corporation.
Bob and john are oligopolists in the market for ice cream. If Bob and John engage in a price war will the price of ice cream in their town be closer to Perfectly competitive market or a monopolistic?
Perfectly competitive, because both firms will compete to earn a greater market share (they are "price takers"), leading to prices that more closely resemble a perfectly competitive market than a monopolistic market (one dominant "price making" firm).
A firm in a monopolistically competitive market is similar to a monopolist in the sense that it?
faces a downward-sloping demand curve
Can a monopolistic competitive firm earn long run profit?
In the long run, if a firm is making a profit more firms will enter. This will cause profit to drop. Firms will eventually drop out because of this and economic profit will makes it way to zero(a result of the invisible hand).
What is the Price output determination under monopolistic competition?
Define monopolistic competition. How price & output is determined under monopolistic competition.Answer: - monopolistic competition: - in 1933, a Harvard university professor, Edward chamberlain" published his book, "the theory of monopolistic competition" in which he defined monopolistic competition as:Definition: - "a market model with freedom of entry and large number of firms that produce similar by slightly differentiated products, advertisement being the principal tool for differentiating the products".Define monopolistic competitionThere are various goods like soap, cloth, & tooth paste, which are produced under monopolistic competition.CONDITIONS OF MONOPOLISTIC COMPETITION: - following are the important conditions of monopolistic competitionSellers and buyers: - there is a large number of buyers and sellers in the monopolistic market. Generally, the number of firms is within 25-30.Small share of supply: - each firm acts independently and produce a small share of the total output.Differentiated products: - the product of each firm can be differentiated by trade mark or packing.Entry of new firms: - in a monopolistic competition, new firms can easily enter into the market.Inefficient firms in the market: - inefficient firms also live in the market side by side & sell the defective products.Control over price: - a firm has only limited control cover the price of the product according to its supply.Elastic demand curve: - the demand curve of the firm is negatively sloped, and because there are many firms in the market which are producing a similar commodity. Therefore, the demand for the products of each firm is elastic.Advertising: - In a monopolistic competition, firms spends a lot of money on advertisement, to attract the consumers.Stiff competition: - there is a stiff competition among the firms for the sale of a particular brand, not only in price but also in the quantity of the product.
