Final Paper Eco 204

Potato Chip application ECO 204 Stephanie Webb Potato Chip Industry In 2007, on that point was a white potato vine ti chip diligence in the northwestern that were hawkishly structured, and they were doing fairly surface competing in a monopolistic ally hawkish market structure. However, in 2008 two lawyers judgement that the potato chip diligence could fair better doing as a monopoly so that pulled all firms to turnher and called the industry Wonks. A charge consulting firm was hired by the lawyers and the instruction consulting firm predicted in that respect would be a divers(prenominal) long run free-enterprise(a) equilibrium. This paper entrust explain what a monopolistic combative market structure is; what a monopoly is; how the industry switching to a monopoly will affect sets; and also how the monopoly will be sound to everyone involved in the industry. As was stated, the potato chip industry was originally a monopolistic competitive market struc ture. This content that thither are a mammoth number of firms in this industry, no barriers to entry, and also there is harvest-tide differentiation. With a monopolistic competitive structure, firms fuel non influence market scathe simple because of their surface or sizes (Case, Fair, and Oster, 2009).

For example, eaterys are considered to be a monopolistic competitive market structure simply because there are so many restaurants today. If all the restaurants sold hamburgers, not one restaurant could set the price for the hamburgers. The restaurants can solo decide what their price will be for the hamburgers, not what all of the other restaurants should be having customers pay for hamburgers. Restaurants can, however, dif! ferentiate their products. This means that restaurants can come up with unique items to sell. If every restaurant had the pick out comparable computer menu options, customers would get sick of the same things. By providing restaurant specials that no other restaurant provides, the restaurant is ensuring that their menu options are large and better than the...If you want to get a full essay, erect it on our website: OrderEssay.net

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