Business, 24.03.2020 21:52 Pooh1189

Do consumers benefit in any way from monopolistic competition relative to perfect competition? Compared to perfect competition, when a consumer purchases a product from a monopolistically competitive firm, the consumer benefits from purchasing a product

Answers: 1

Show answers

Answers

Answer from: jmitial

Yes, consumers benefit from monopolistic competition relative to perfect competition in that, there is variety and more differentiated options to choose from in Monopolistic competition as compared to perfect competition where prices are not determined by the seller.

Explanation:

Monopolistic competitive markets have firms competing with one another for the same group of customers to some degree, each firm's product is a little bit different from that of all the other firms, and therefore each firm gives addition value to attract more clients.

In the case of perfect competition where prices are already fixed and the aim is to maximize profit. There might be no emphasis on quality and uniqueness.

The consumer benefits more and achieves more satisfaction due to variety of options and pricing from monopolistic competition.

Answer from: 1462264

Yes.

Consumers benefit in some ways from monopolistic competition relative to perfect competition.

Explanation:

One of the major ways a customer can benefit from a monopolistic competitive market is through product differentiation, diversity choice and utility.

It is important to understand what the two market structures are:

The model of monopolistic competition describes a common market structure in which firms have many competitors, but each one sells a slightly different product. A good example is the smartphone industry. Customers can choose which brand of smartphones they want to buy depending on the various manufacturers .

In a perfect competition prices are dictated by supply and demand. Firms in a perfectly competitive market are all price takers because no one firm has enough market control.In this market type, all the sellers sell exactly the same commodity. An example is the fruit market. The fruits are the same regardless of the seller.

Differentiation creates diversity, choice and utility. In a monopolistic competitive market, consumers are treated with different versions of each product depending on the businesses brand, and they can make their choices according to their taste. This gives consumers a better experience than a perfect market, where the goods sold are exactly the same and there is no diversity.

Answer from: Quest

answer: i think an the punishment you did was an ok one, but i think you should tell the parents so the parents can talk to the kids.

Answer from: Quest

Is this supposed to be a question or a protest

Another question on Business

Business, 21.06.2019 19:50

Suppose your rich uncle gave you $50,000, which you plan to use for graduate school. you will make the investment now, you expect to earn an annual return of 6%, and you will make 4 equal annual withdrawals, beginning 1 year from today. under these conditions, how large would each withdrawal be so there would be no funds remaining in the account after the 4th?

Answers: 1

Answer

Business, 21.06.2019 20:30

Licensing is perhaps the easiest method of entering into international trade. another method of entering international trade, which can be relatively low risk, is which opens several levels of involvement to company

Answers: 2

Answer

Business, 23.06.2019 03:00

In each of the cases below, assume division x has a product that can be sold either to outside customers or to division y of the same company for use in its production process. the managers of the divisions are evaluated based on their divisional profits. case a b division x: capacity in units 200,000 200,000 number of units being sold to outside customers 200,000 160,000 selling price per unit to outside customers $ 90 $ 75 variable costs per unit $ 70 $ 60 fixed costs per unit (based on capacity) $ 13 $ 8 division y: number of units needed for production 40,000 40,000 purchase price per unit now being paid to an outside supplier $ 86 $ 74 required: 1. refer to the data in case a above. assume in this case that $3 per unit in variable selling costs can be avoided on intracompany sales. a. what is the lowest acceptable transfer price from the perspective of the selling division? b. what is the highest acceptable transfer price from the perspective of the buying division? c. what is the range of acceptable transfer prices (if any) between the two divisions? if the managers are free to negotiate and make decisions on their own, will a transfer probably take place?

Answers: 3

Answer

Business, 23.06.2019 15:30

10. problems and applications q10 a market is described by the following supply-and-demand curves: qsqs = = 2p2p qdqd = = 300â’p300â’p the equilibrium price is $ and the equilibrium quantity is . suppose the government imposes a price ceiling of $90. this price ceiling is , and the market price will be $ . the quantity supplied will be , and the quantity demanded will be . therefore, a price ceiling of $90 will result in . suppose the government imposes a price floor of $90. this price floor is , and the market price will be $ . the quantity supplied will be and the quantity demanded will be . therefore, a price floor of $90 will result in . instead of a price control, the government levies a tax on producers of $30. as a result, the new supply curve is: qsqs = = 2(pâ’30)2pâ’30 with this tax, the market price will be $ , the quantity supplied will be , and the quantity demanded will be . the passage of such tax will result in .

Answers: 1

Answer

You know the right answer?

Do consumers benefit in any way from monopolistic competition relative to perfect competition? Compa...

Questions

Business, 26.02.2021 22:40

Which one of the following is not an example of why plans might fail?...