
The necessity of product differentiation on

Explanation of Solution
The monopolistic competition is a market structure that is characterized by the entry of a large number of firms into the market, no barriers to entry and exit, product differentiation, and some control over the market
Monopolistically competitive firms can differentiate their product by their location, style, product features, advertising, quality, and quantity. Differentiating product in a way that shows the locality by customers causes a decrease in the elasticity of products, an increase in their market power, and an increase in the price of goods in the market.
Monopolistic competition: Monopolistic competition is an imperfect market structure that has a relatively large number of buyers and sellers in the market, differentiated products, some control over the market price, and a few barriers to entry and exit.
Want to see more full solutions like this?
Chapter 12 Solutions
EBK PRINCIPLES OF MICROECONOMICS (SECON
- not use ai pleasearrow_forwardNot use ai pleasearrow_forwardHelp me write these economic analysis for Macys one paragraph) Company name/current state of operation of this company - Describe the company's performance in the present economy, whether it is growing or declining, and who are its competitors?arrow_forward
- not use ai pleasearrow_forwardThe following graph plots daily cost curves for a firm operating in the competitive market for sweatbands. Hint: Once you have positioned the rectangle on the graph, select a point to observe its coordinates. Profit or Loss0246810121416182050454035302520151050PRICE (Dollars per sweatband)QUANTITY (Thousands of sweatbands per day)MCATCAVC8, 30 In the short run, given a market price equal to $15 per sweatband, the firm should produce a daily quantity of sweatbands. On the preceding graph, use the blue rectangle (circle symbols) to fill in the area that represents profit or loss of the firm given the market price of $15 and the quantity of production from your previous answer. Note: In the following question, enter a positive number regardless of whether the firm earns a profit or incurs a loss. The rectangular area represents a short-run of thousand per day for the firm.arrow_forwardNot use ai pleasearrow_forward
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage LearningEconomics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
- Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc





