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Why does differentiating its product allow an oligopoly to charge a higher price?
Wiki User
∙ 12y ago
Prevents new firms from entering the industry
Wiki User
∙ 12y ago
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How does differentiation help monopolistic competitive firms sell their products?
This allows firms to charge higher prices for their specific product.
Match the type of market structure with each example a pure competition online auctioning b monopoly video rental stores c monopolistic competition water and sewer service d oligopoly?
Pure competition-Online auctioning Monopoly-Water and sewer service Monopolistic competition-Video rental stores Oligopoly-Digital camera makers
What is the effect of advertisement on monopolistic competition?
There is not much need for adverticement when one company has a monopoly over one product. It is only needed to remind the people this product exists and where they can buy it. There is no competition if you have monopoly. If the product is coveted/needed/multiuseful usually one session of adverticing can result a rush to the store. This happened during war when there was lack of mostly anything. If you adverticed 'we have bread' you would advertice in a few moments 'we do not have bread'.
How is OPEC a multilateral oligopoly?
OPEC is a collection of oil exporting countries. Oligopoly - Industry that is controlled by a few major players (firms or countries) Collusion - When industry leaders secretly agree to limit quantities of production. This will guarantee the colluders a higher price for their product OPEC meet to discuss the quantity of oil they will allow onto the world market. This is collusion. Because the OPEC members are the main suppliers of oil they are said to be an oligopoly
Compare the quantity and price of an oligopoly to those of a competitive market?
At profit maximization, marginal cost equals marginal revenue. Price will be higher than marginal cost.
How does differentiation help monopolistic competitive firms sell their products?
This allows firms to charge higher prices for their specific product.
Specialization in production is economically beneficial primarily because it?
Specialization allows businesses to charge a higher price for the product. When a product is specialized, customers are will to pay more in order to have access to the upgraded features.
What are two benefits of aiming your product at a gap in the market?
-more sales -less competition -charge a higher price -eaiser to target a niche market
What is a negative feature of a free market?
Businesses may charge their own prices and may also form monolpolies. Without government regulation, a single firm could control one product and charge the consumer higher than what it is worth to maximize its own profit. (especially if the product is considered essential for living)
What concept did you you apply in finding the product?
the more you multiply it the product becomes higher in math
What is the advantage of product differentiation?
A company that excels at product differentiation can normally demand a higher price for a product because of its perceived higher quality.
What is a negative feature of free-marketing economy?
Businesses may charge their own prices and may also form monolpolies. Without government regulation, a single firm could control one product and charge the consumer higher than what it is worth to maximize its own profit. (especially if the product is considered essential for living)
Match the type of market structure with each example a pure competition online auctioning b monopoly video rental stores c monopolistic competition water and sewer service d oligopoly?
Pure competition-Online auctioning Monopoly-Water and sewer service Monopolistic competition-Video rental stores Oligopoly-Digital camera makers
What is the effect of advertisement on monopolistic competition?
There is not much need for adverticement when one company has a monopoly over one product. It is only needed to remind the people this product exists and where they can buy it. There is no competition if you have monopoly. If the product is coveted/needed/multiuseful usually one session of adverticing can result a rush to the store. This happened during war when there was lack of mostly anything. If you adverticed 'we have bread' you would advertice in a few moments 'we do not have bread'.
How is OPEC a multilateral oligopoly?
OPEC is a collection of oil exporting countries. Oligopoly - Industry that is controlled by a few major players (firms or countries) Collusion - When industry leaders secretly agree to limit quantities of production. This will guarantee the colluders a higher price for their product OPEC meet to discuss the quantity of oil they will allow onto the world market. This is collusion. Because the OPEC members are the main suppliers of oil they are said to be an oligopoly
What is the advantage of differential?
A company that excels at product differentiation can normally demand a higher price for a product because of its perceived higher quality.
Compare the quantity and price of an oligopoly to those of a competitive market?
At profit maximization, marginal cost equals marginal revenue. Price will be higher than marginal cost.
