0
Why there is a large number of sellers and buyers in monopolistic competition?
Wiki User
∙ 10y ago
large numbers of buyers and sellers
Wiki User
∙ 10y ago
Add your answer:
Earn +20 pts
What exists when a large number of sellers produce products tht are very similar but are perceived by buyers as different?
Monopolistic competition
What is a market structure with a large number of sellers who makes differentiated products is called?
Monopolistic competition
Monopolistic competition occurs where A. there are relatively few sellers competing. B. a single seller dominates trade. C. a large number of buyers and sellers exchange relatively well-differentia?
C. "is a marcket structure, like that for retailing, in which sellarge numbers of buyers and sellers exchange relatively well-differentiated products..." page 72 dumb-dumb
What are the features of perfect competition?
1. large number of buyers and sellers. 2. homogeneous product.
Which f the following best states the main difference between a monopoly and monopolistic competition?
Under pure competition there are large number of buyers and sellers, homogeneous products and free entry and exit. Whereas under Monopoly there is a single seller, there are no close substitutes for the commodity it produces and there are barriers to entry.
Monopolistic competition occurs where?
a large number of buyers and sellers exchange relatively well-differentiated products
What exists when a large number of sellers produce products tht are very similar but are perceived by buyers as different?
Monopolistic competition
Numbers of sellers in a market?
perferct competition are a large number of buyers and sellers.
What is a market structure with a large number of sellers who makes differentiated products is called?
Monopolistic competition
Monopolistic competition occurs where A. there are relatively few sellers competing. B. a single seller dominates trade. C. a large number of buyers and sellers exchange relatively well-differentia?
C. "is a marcket structure, like that for retailing, in which sellarge numbers of buyers and sellers exchange relatively well-differentiated products..." page 72 dumb-dumb
What are the features of perfect competition?
1. large number of buyers and sellers. 2. homogeneous product.
Which f the following best states the main difference between a monopoly and monopolistic competition?
Under pure competition there are large number of buyers and sellers, homogeneous products and free entry and exit. Whereas under Monopoly there is a single seller, there are no close substitutes for the commodity it produces and there are barriers to entry.
Why hotel is monopolistic competition?
I think that's because there are many hotels around the world that provide similar services and those are characteristics of monopolistic competition:Large number of firms, sellers and buyersSimilar goods and services
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.
Under what market conditions is monopolistic competition possible?
a large number of sellers produce a product or service that is perceived by consumers as being different from that of a competitor but is actually quite similar
What exists when a large number of firms produce goods that are similar but are perceived by buyers as being different?
Monopolistic competition is when a large number of firms produce goods that are similar but are perceived by buyers as being different. When the entire supply of a product is from one seller it is a monopoly.
What is the difference between monopoly and monopolistic competition in the context of diamond market?
Monopoly means a market situation in which there is only a single seller and large no. of buyers. whereas monopolistic competition is a market situation in which there is large no. of sellers and large number of buyers. In monopolistic competition, close substitutes are there in the sense that products are different in terms of size, color, packaging, brand, price, etc. as in the case of soap, toothpaste, etc. In monopoly, there is no close substitute of the good, if any, it will be a remote substitute. In monopolistic competition, there is aggressive advertising but in monopoly, there is no advertising at all or a very little. In monopolistic competition, demand curve faced by the firm is more elastic because of availability of close substitutes. It means if a firm raises its price, it will lose its large market share as customers in large will shift to close substitutes present in the market. In monopoly, the demand curve faced by the firm is less elastic because of no close substitutes. It means if the firm raises its price, demand will not fall in a large quantity as it is only one in the market.
