What is the nonprice competition? Why is there an emphasis on nonprice competition in oligopoly markets rather than on lowering prices to gain market share?

Explain the concept of market power. Why does a monopolist have market power while a perfectly competitive firm does not?

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naqvinida786Lv4

9 Jun 2022

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Related questions

When looking at Pizza Hut

1. What is the current structure of the industry?

How many firms are in the industry? Have they been increasing or decreasing in number? How large are the firms relative to the size of the industry?

2. Would you classify the industry as perfectly competitive, monopolistically competitive, an oligopoly, or a monopoly? Explain your conclusion.

3. What is your assessment of the degree of competition in the industry? Are prices close to or far from marginal costs? What kinds of nonprice competitions occur in this industry?

4. How do government regulations affect this industry?

5. How does the U.S. governmentâs economic policy affect this industry?

Trade policy

Domestic economic policy

greencat417

A monopoly differs from monopolistic competition in that:

A. in a monopoly, there are significant entry barriers, but there are low barriers to entry in a monopolistically competitive market structure.

B. a monopoly can never make a loss, but a firm in monopolistic competition can

C. a monopoly has market power, while a firm in monopolistic competition does not have any market power

D. a monopoly faces a perfectly inelastic demand curve while a monopolistic competitor faces an elastic demand curve

peachcrow879

1 How does monopolistic competition differ from the pure competition in its basic characteristics? From pure monopoly? Explain fully what product differentiation may involve. Please explain how the entry of firms into its industry affects the demand curve facing a monopolistic competitor and how that, in turn, affects its economic profit.

2 "Competition in quality and service may be just as effective as price competition in giving buyers more for their money." Do you agree? Why? Explain why monopolistically competitive firms frequently prefer nonprice to price competition.

3 Critically evaluate and explain:
a. In monopolistically competitive industries, economic profits compete away in the long run; hence, there is no valid reason to criticize such industries' performance and efficiency.
b. In the long run, monopolistic competition leads to a monopolistic price but not to monopolistic profits.