0
In which type of market do individual firms have no incentive to advertise that is to engage in non-price competition?
Wiki User
∙ 14y ago
monopoly =========== It is actually perfect competition. In a monopoly, a firm may choose to advertise to gain a better image on the market. But in a perfect competitive market, prices are set by the market (Firms are price takers), thus advertising would not increase profits at all.
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
Which form of nonprice competition is a local restaurant preparing a new recipe for its lunch menu?
physical characteristics
List three problems of allocating goods and services using nonprice-related methods?
-problem of fairness -high administrative cost -diminishing incentive
Which market structure relies most heavily on nonprice competition?
The answers to the captivity exercise will not be found online. Students will have to visit their instructor for help with the answers.
What distinguishes Oligopoly from Monopolistic Competition?
Oligopoly is distinguished from monopolistic competition by being composed of few firms (not many); by being mutually interdependent with regard to price (instead of control within narrow limits); by having differentiated or homogeneous products (not all differentiated); and by having significant obstacles to entry (not easy entry). Both engage in much nonprice competition.
When a real estate agent says the three most important factors when buying a property are location the agent is referring to one of the forms of?
nonprice compition
What is advertising a form of?
pure competiton.price competition.nonprice competition.ineffective competition.Answer is: Nonprice competition
What are the characteristics of monopolistic competition in terms of market structures?
It includes many sellers, differentiated products, easy entry and exit, and nonprice competition.
Which form of nonprice competition is a local restaurant preparing a new recipe for its lunch menu?
physical characteristics
List three problems of allocating goods and services using nonprice-related methods?
-problem of fairness -high administrative cost -diminishing incentive
What is the importance of marketing information system?
Bridges information gap.Helps in environmental scanning.Developing, implementing and controlling marketing plans and programs.Meeting nonprice competition.
Which market structure relies most heavily on nonprice competition?
The answers to the captivity exercise will not be found online. Students will have to visit their instructor for help with the answers.
What distinguishes Oligopoly from Monopolistic Competition?
Oligopoly is distinguished from monopolistic competition by being composed of few firms (not many); by being mutually interdependent with regard to price (instead of control within narrow limits); by having differentiated or homogeneous products (not all differentiated); and by having significant obstacles to entry (not easy entry). Both engage in much nonprice competition.
What is nonprice competition?
Non-price competition refers to competition among firms that choose to distinguish their product via non-price means. EX: style, delivery, location, atmosphere, promotions, etc. Non-price competition is often used by firms that wish to differentiate between virtually identical products (dry-cleaners, food products, cigarettes, etc). Although any firm can use non-price competition, it is most common among monopolistically competitive firms. The reason for this is that firms which operate in the monopolistically competitive market are price takers, that is, they simply do not have enough market power to influence or change the price of their good. Consequently, in order to distinguish themselves, they must use non-price means.
When a real estate agent says the three most important factors when buying a property are location the agent is referring to one of the forms of?
nonprice compition
When a real estate agent says the three most important factors when buying a property are location location location the agent is referring to one the forms of?
nonprice compition
Managerial economics - what are the 4 market models and examples?
Pure Competition:Involves very large numbers of firms producing identical products.Standardized product (a product identical to that of other producers--ex. corn or cucumbers).no attempt to advertise or differentiateFree Entry and Exit: no significant legal, technological, financial, or other obstacles prohibiting new firms from selling their output in any competitive marketNo control over the price: "Price Takers"(i.e. the firms have no market power) . The individual firm has very little to no impact on the market.Demand is perfectly elastic.Maximizes productive and allocative efficiency.ex. Agriculturepure competition markets do not actually exist.Note: Pure competition does not actually exist in our society, and the agriculture industry is the closest industry to being purely competitive. The pure competition model is used as a standard to evaluate the efficiency of our economy (something to compare to and help our understanding of economy.)Monopolistic Competition:Involves large number of firms, but not as many as in pure competition.Produces differentiated products (ie. clothing, furniture, books) Nonprice competition - a selling strategy in which firms try to distinguish their product or service on the basis of attributes such as design and workmanship (product differentiation)Focuses mostly on advertising, brand names, and trademarksFirms can easily enter or leave this market, although not as easily as firms in a purely competitive market.Imperfect Competition.Limited control over pricesex. retail trade, dresses, shoesOligopoly:Involves a few firms that exert considerable influence over the industryProduces either standardized or differentiated products.NONPRICE COMPETITION: emphasis on product differentiationExisting firms are strong rivals and affects each other's price and output.Control over price limited by mutual interdependence; considerable with collusion (the decision of rivals).Harder for a firm to enter or exit.Imperfect competition.A great deal of nonprice competition, especially with differentiated products ex. steel, automobiles, household appliancesPure Monopoly:Only one firm is involved.Products are unique with no substitutes.NONPRICE COMPETITION: mostly public relationsEntry of additional firms is not possible--one firm constitutes the entire industry.Entry to the industry is often blocked by government. It requires patent or licenses.Since the monopolist produces a unique product, it makes no effort to differentiate its product.Imperfect Competition.There is total control over price "Price Makers"ex. local electric utilityOil, John D. Rockefellerdiamondssource:
Over time certain nonprice factors can shift the entire supply curve for a production List these factors?
Number of sellers, technology, resource prices, taxes/subsidies, expectations of producers, and the prices of other goods the firm could produce
