scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 568
INTRODUCTION When it comes to goods and services it seems as if we reside in a country overflowing with persuasive advertisements and diverse choices This has a lot to do with monopolistic competition Residents of monopolistically competitive regions find it hard to believe that there are locations where advertisements are almost non existent and choices are limited Places like these lack monopolistic competition but instead have almost pure competition Lets take a closer look between the two very different market structures PURE COMPETITION In a purely competitive market structure a firm sells standardized goods set at market price Advertisements and brand names are virtually absent in a purely competitive situation There is a high number of sellers as well as a high number of buyers and entry and exist into the market is fairly simple Also firms in this type of structure are price takers The producers must sell as many goods as they can at market price leaving them with no control over the cost Purely competitive markets are rare but some examples are car dealers real estate agents the agricultural industry and the local dry cleaners MONOPOLISTIC COMPETITION In monopolistic competition firms sell brand name differentiated goods and services and have some say over the price As in pure competition exit and entry is also quite simple There is a big number of sellers and even a bigger number of buyers In monopolistic competition you have both price competition and non-price competition A fairly rewarding profit can be earned in such a market Some examples of monopolistic competition are grocery stores such as Vons or Ralphs restaurants like Burger King and Carls Jr and hotels ranging from the Holiday Inn to the Ramada MONOPOLISTIC VS PURE There are many pros and cons of monopolistic and pure competition In monopolistic competition the public is given more variety when it comes to goods and services One is not limited to only eating the Whopper
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA