Monopolistic Structure Essay

1678 Words 7 Pages
Research Project 1
In todays’ market there are a variety of consumers that offer similar products. Organizations must think of ways to be more innovative in order to make their product stand out from other organizations that cell similar products. One of the best ways organizations of been able achieve the ability of standing out from its competitors is through pricing. Pricing strategies allow organizations to look at variety of factors, including the type of consumers that may be purchasing their products. If a business were to set up in in a more rural area and decided to charge high prices it may not be successful due to that fact that consumers are more conscience about spending money. Other business may not run into these
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Monopolistic structures thrive when the marginal revenue equals the marginal cost. Firms attempt to make their products better than their competitors in order to be able to charge more. Firms make a unique product so they are entitled to charge higher or lower prices than competitors. Firms that follow monopolistic structures are considered as price makers. Therefore they have a downward sloping demand curve. The pricing strategies in a monopolistic structure greatly depends upon adverting. Firms are often in tremendous competition with organization that offer similar products so the key is to prove to consumers that their product is a better purchase. A great example of monopolistic competition are toothpaste suppliers. Toothpaste suppliers are constantly trying to convince consumers that their product is essential for sensitive teeth, that it makes your teeth whiter or that it prevents cavities and bacterial …show more content…
In order to ensure growth a company must insure that it is operating within the right market structure. The oligopoly market structure is one that has a high barrier of entry. Therefore, it is conducive for a firm to enter in to an oligopoly early. Otherwise, an organization may not be able to acquire revenue. There are a number of things to consider when determining pricing. Often companies need to be aware of what their competitor’s behaviors, the demographical area they are selling in and the needs of

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