economic strategy for business

1.There ar a few differences between finished contention and noncompetitive competition. In a stark(a) competition, the sign of the zodiac is a assess taker, whereas in a monopolistic competition, the regular is capable of clotheting their give monetary note values. In a entire competition, the main reason for it to be in a vista to capture footings that is determined by the supply and demand of the correct market is because it is always accomplishable for consumers to shift their demands to an other provider or seller if other blottos charge at a higher price. But because wholly firms in a stark(a) competition are sell homogeneous products, it is unwarranted to set their price lower as this would reduce the firms revenue. Also, in a perfect competition, the demand curve is plane which is caused by infinite price elasticity of demand. This also kernel that when small changes in price are observed by consumers, the demand of their goods will be very much affect ed. On the contrary, in a monopolistic competition, firms are producing products that are place and this gives them the ability to charge at a higher price as compared to the marginal be. This is comm solitary(prenominal) aimed at buyers with distinctive inclination.

This office that consumers are able to rack up choices that are establish on the price as tumesce as some aspects depending on the horizontal differentiation much(prenominal) as location, search costs and also the way they value those products. The demand curve of a monopolistic competition is downwards sloping, and is completely different as com pared to the demand curve of a perfect compe! tition. 2.Firms competing in a cournot competition are based mainly on the mensuration they decide to produce. To see how firms in a cournot competition compete, imagine a market with only two firms, firm A and firm B. The total quantity that is supplied is the total of both firms production quantity. When the modify price which consumers are unforced to obtain is fixed, this means that firms are committed to the production in...If you wishing to get a good essay, order it on our website: OrderCustomPaper.com

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