Essay about Monopolistic Competition

Essay about Monopolistic Competition

Length: 981 words (2.8 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Are you an extensive traveller? Do you love music? Then your answer is a MP3 Player, a device that allows you to listen to your favorite music on the go. There is nothing like putting on the head set, laying back and listening to some refreshing music when you are exhausted. This is when a MP3 player comes in handy.
MP3 players have dominated the market in a huge way and companies would be ready to pay a handsome amount for some off the basket innovation that would lead their company all the way the top. Any company producing MP3 players faces one of the tightest competitions in the market.

MONOPOLISTIC COMPETITION
In a monopolistic competitive market the product of different sellers are discerned on the basis of brands. Here the product differentiation given rise to an element of monopoly to the producer over the competing product. As such the producer of the competing brand could increase the price of the product knowingly well that the brand loyal customers are not going to leave them. This is possible as here the products have no effective substitutes. How ever since all the brands are of close substitutes to one another the seller would lose some of their customers to these competitors. In the past many companies have faced the trouble of having a bag full of customers and due to close-fitting .competitors they end up only having a few. Most entrepreneurs fell that fronting their competitors is the toughest part of running a business in a monopoly market. Thus the monopolistic competitive market is a mixture projecting out both monopoly and perfect competition.
MP3 PLAYERS AN EXAMPLE FOR MONOPOLISTIC COMPETITION
An mp3 player is a type of digital audio players that falls under the broader category of pmp devices. It i...


... middle of paper ...


...ily journey.as of these reasons mp3 player have become part of life. Apple has dominated the market in all aspects and will continue to do so until it encounters the tight competition.









BIBLIOGRAPHY
1. Kraemer, K.L.; Derick, J. (2002).Strategic Use of the Internet and E-commerce:
Cisco Systems. Journal of Strategic Information Systems, pp. 11, 5-29.
2. Begg, David. (2002). Economics seventh edition:
Monopolistic competition, pp. 9,123-124
3. Maccormack, A.;Verhanti, R.; Iansiti, M. (2001). Developing Products on
“Internet Time”: The Anatomy of a Flexible Development Process. Management
Science, 47, 1, 133-150.
4. Hamel, G.; Prahalad, C.K. (1994).Competing for the future .Boston: Harvard
Business School Press.
5. Howard Bill (2009); iPod competition available at http://www.pcmag.com;
Accessed on 1.12.2010.


Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay on Benefits Of Having Monopolistic Competition

- In the marketplace, consumers will have more purchasing power in a monosomy market than a monopoly where the sole producer has the power. Monopolies form in several situations, typically through entry barriers or government regulation. The government can relegate a new monopoly in a market that is owned by the government. If one where to think of an example of a government-owned monopoly in Ontario, the first thing that may come to mind for university students would be the LCBO. For those students who have every traveled to any other province, they would find many sellers in the liquor market....   [tags: Monopoly, Competition, Perfect competition]

Better Essays
728 words (2.1 pages)

Market Structure Of Monopolistic Competition Essay

- 1) There are three market types know as Perfect Competition, Monopolistic Competition, and a Monopoly. In the market structure of Perfect Competition there is a large number of producers that produce standardize objects, but they have no power, low barriers to entry, and have a lot of competition. Moreover, the market structure of Monopolistic Competition also has a large number of producers and low barriers to entry, like “Perfect Competition”; nonetheless the product is differentiated, so therefore they have some power, and competition....   [tags: Supply and demand, Price elasticity of demand]

Better Essays
886 words (2.5 pages)

Monopolistic Competition Essay

- According to the CollinsDictionary.com, “monopolistic means exclusive control of the market supply of a product or service”. (Collins, 2013) A monopolistic has total control of profitable action through the ownership or legitimate funding. Monopolistic competition is about non-price competition (marketing, trademarks, designer titles) whereas the company’s product is different from its competitor’s product or substitute but functions in a similar fashion in whatever industry it may be facilitated for its consumers and lead toward rise in monopoly power but not proceeds....   [tags: market, pricing strategy, insurance]

Better Essays
883 words (2.5 pages)

Essay about Monopolistic Competition

- Are you an extensive traveller. Do you love music. Then your answer is a MP3 Player, a device that allows you to listen to your favorite music on the go. There is nothing like putting on the head set, laying back and listening to some refreshing music when you are exhausted. This is when a MP3 player comes in handy. MP3 players have dominated the market in a huge way and companies would be ready to pay a handsome amount for some off the basket innovation that would lead their company all the way the top....   [tags: MP3 Player, Persuasive Essay ]

Better Essays
981 words (2.8 pages)

Monopolistic Competition in the Retail Industry Essay

- Monopolistic Competition in the Retail Industry Defining the Market The retail industry is comprised of thousands of different brands and companies. However each is defined by its quality of make and materials used. Abercrombie & Fitch, Timberland, and Guess are all well-known and respected brand names. However if prices were to exceed what people are willing to pay, then the consumers would alter their preferences and buy from another brand. Therefore we are dealing with a monopolistic competition....   [tags: Microeconomics Economics Essays]

Better Essays
1209 words (3.5 pages)

Difference Between Oligopoly and Monopolistic Competition Essay

- Difference Between Oligopoly and Monopolistic Competition An oligopoly market structure is one in which there are a few large producers who are present in the industry and account for most of the output in the industry, there are many small firms but these few large firms dominate and have concentrated market shares. Whereas monopolistic competition is a market structure that has a large number of sellers, each of which is relatively small and posse a very small market share....   [tags: Papers]

Free Essays
378 words (1.1 pages)

Essay on Four Major Market Structures

- There are four major market structures; perfect competition, monopolistic competition, oligopoly, and monopoly. Perfect competition is the market structure in which there are many sellers and buyers, firms produce a homogeneous product, and there is free entry into and exit out of the industry (Amacher & Pate, 2013). A perfect competition is characterized by the fact that homogeneous products are being created. With this being the case consumers have no tendency to buy one product over the other, because they are all the same....   [tags: Competition, Monopolistic, Oligopoly, Monopoly]

Better Essays
1239 words (3.5 pages)

Monopolistic Markets Are Controlled By One Seller Essay examples

- Monopolistic markets are controlled by one seller only. The seller here has the power to influence market prices and decisions. Consumers have limited choices and have to choose from what is supplied. The monopolist asserts all the power while the consumer is left with no choice. This market condition usually arises from mergers, take-overs and acquisitions. Oligopoly, on the other hand, is a market condition where numerous sellers co-exist in the market place. This market situation is very consumer-friendly because it induces competition amongst sellers....   [tags: Monopoly, Competition, Oligopoly, Economics]

Better Essays
1315 words (3.8 pages)

Should The Government Dismantle A Monopolistic Firm? Essays

- The economy is a pivotal part in our everyday life. Consumers are very much affected by the economy whether we think about it or not. Our economic system, once a pure capitalistic system where the government did not regulate the private sector, has shifted to a mixed economy system. Since the emergence of monopolies, the government has increased their involvement in regulating them. With that said, monopolies still exist today. Although they are frowned upon, there are certain benefits monopolies offers....   [tags: Economics, Monopoly, Competition, Cartel]

Better Essays
1819 words (5.2 pages)

competition Essay

- Examine the concept of competition. Explain how it works in market economies. In what way is it a crucial part of the business environment. 1000 words In this essay I have analysed the different types of competition and market structures, and linked this to a current world example. I’ve discussed the neo-classical and dynamic approaches to competition and have studied Michael Porter’s Five Force model. Systemic and structural competitiveness has been mentioned, and market economies are examined including technical and allocative efficiency....   [tags: essays research papers fc]

Free Essays
1147 words (3.3 pages)