Monopoly competition
Is a kind of incomplete competition, so many producers sell different products to each other, so it is not the perfect substitute. In a monopolistic competition, the firm treats the price charged by its rival as a given price and ignores the effect of its own price on the prices of other firms.
The monopolistic competitive market has the following characteristics:
1. There are many producers on the market and many consumers, no business can fully control the market price.
2. Consumers perceive non-price differences between competitors' products.
3. Obstacles to access are few.
4. Producers have a degree of control over prices.
The long-term characteristics of a monopolistic competitive market are almost identical to those …show more content…
Thus, if the demand for the product increases, the organization's response to increased demand will be that they will hire more workers and will produce all. If the demand for the product is reduced, the organization's cash inflows will be reduced because its costs will exceed its profits. The organization's response to this situation will be that they will cut their staff's work to reduce costs. As with demand, there are two things that can happen. When the product supply increases, demand will decrease, and if the product supply decreases, demand will increase.
The goal of each organization is to make their products meet their customers. If any organization produces fashionable products, but they do change over time, with customers continuing to interact with each specific time period, the organization will lose their customers because they will not be able to meet the customer's requirements and will not be able to meet their Customers with their products. The organization relies on its suppliers, without supply, and the production process can not run. If the supplier increases the price of raw materials, it automatically increases the production cost of an
Is a kind of incomplete competition, so many producers sell different products to each other, so it is not the perfect substitute. In a monopolistic competition, the firm treats the price charged by its rival as a given price and ignores the effect of its own price on the prices of other firms.
The monopolistic competitive market has the following characteristics:
1. There are many producers on the market and many consumers, no business can fully control the market price.
2. Consumers perceive non-price differences between competitors' products.
3. Obstacles to access are few.
4. Producers have a degree of control over prices.
The long-term characteristics of a monopolistic competitive market are almost identical to those …show more content…
Thus, if the demand for the product increases, the organization's response to increased demand will be that they will hire more workers and will produce all. If the demand for the product is reduced, the organization's cash inflows will be reduced because its costs will exceed its profits. The organization's response to this situation will be that they will cut their staff's work to reduce costs. As with demand, there are two things that can happen. When the product supply increases, demand will decrease, and if the product supply decreases, demand will increase.
The goal of each organization is to make their products meet their customers. If any organization produces fashionable products, but they do change over time, with customers continuing to interact with each specific time period, the organization will lose their customers because they will not be able to meet the customer's requirements and will not be able to meet their Customers with their products. The organization relies on its suppliers, without supply, and the production process can not run. If the supplier increases the price of raw materials, it automatically increases the production cost of an