The History Of The Monopolistic Competition Economics Essay

The History Of The noncompetitive argument Economics EssayIntroductionThere be foursome types of mart anatomical structures atomic number 18 ameliorate Competition, Monopoly, Monopoly Competition and Oligopoly. Long unthaw is the period of time that the houses are able to ad estimable the variable damage and fixes bell. In the long unknot, seller has sufficient time to enter or offspring the market just need to base on the profits. Short run is not a definite period time and it dirty dog just modify the variable cost only. Short run dont have sufficient time to entre and entrust the market because it didnt register the business.Variable cost is a periodic cost that bear change or found to the sales profit of a company. Examples for the variable cost are labor, new(a) material, etc. Fixed cost is a cost that cannot change when the criterion is increase or decrease. Examples for fixed cost are rent, buildings, capital, machinery, etc. bare(a) Revenue is when s elling goods or doing business gains the total profit from the ingathering or business. Marginal cost is the total cost that when making a product, the purpose of analyzing marginal cost is to determine an organization can r from to each one one their economics of limits.Main BodyPerfect CompetitionWhat is Perfect ambition? Perfect Competition are describes markets much(prenominal) that not enough market power to set the expense of an identical product. The multi-national example for the arrant(a) ambition is egg, rice, wood and flour.CharacteristicsThere are many lineaments nether perfect opposition the first is Identical or Homogenies Product. This characteristics means the qualities and characteristics do not diversification between different suppliers. Each tauten in a perfect argument market overly has selling their identical products all the goods are perfectly the same one, so the buyer cannot distinguish whether the goods came from some other self-coloured an d no trusty could raise the price above the market price and still retain its sales.The second characteristic in perfect emulation is the firms and household are got the perfect knowledge. In perfect knowledge, all the firm and household are aware of sellers price changes such that a firm cannot sell their goods higher price than another firm. The firm and household must have all the information regarding the market situation and the how does the economy work. then the price change, the technological development also can immediately ratify to all the firm and household.The third characteristics in perfect challenger are freedom entry and exit the market there are no barriers to them. In the long run business, when the register firm need to exit the market, it needs to show a prove, but in the short run there is no restriction to entry or exit the market. The blameless firm in a perfectly rivalry market conciliate a normal profit in the long run.MonopolyWhat is Monopoly? A M onopoly is a market that just got only one manufacturer and many buyers, the maker sell the goods may be is differentiated or identical but the importance point is the goods have no close and no replacement. The multi-national for Monopoly is Vegetables and payoff from Farmer.CharacteristicsThere are many characteristics on a lower floor monopoly the first is the monopoly is the price maker, monopoliser can control the price, and he can brand itself and set the price, the monopoliser has to deal with its market price.The second characteristic under monopoly is Barrier to launch and Exit the market, some of the barriers are government license, patents and copyright, control of marketing channels. This is the priming that monopoly is really hard to entry. Barrier to exit must go to consecrate to public utilities such as local telephone companies, natural heavy weapon distribution companies, electricity companies, and garbage collection companies.The third characteristic und er monopoly is Household and Firm must have Perfect Information, when selling a product in the market the producer must have a perfect knowledge slightly cannot selling their goods higher price than another firm and this perfect knowledge can comes from legally-established patents, copyrights, or trademark.Monopolistic CompetitionMonopolistic competition is a type of imperfect competition, its market structure which combines elements of monopoly and the competitive markets, the producers are able to differentiate their products. The multi-national example for monopolistic competition is some high precision products, such as multi-cylinder diesel locomotive fuel injection pumps.CharacteristicsThe first characteristic under monopolistic competition is Freedom origination and Exit the market. In the long run market there is free entry and exit. In monopolistic competition each market with its own identical product, any firm unable to mantle its cost can leave the market without pay the liquidation costs. This boldness implies that there are low startup costs, no loss costs and no exit costs, so the cost of entering and exit is very low.The second characteristic under monopolistic competition is the different build product. There is a single product being manufactured by some firms, and the product of each firm is basically the same one. The producer tries to create their own different packaging, different conditions of sale with respect to guarantees, after-sales operate and different geographical location.The third characteristic under monopolistic competition is household and firms didnt have perfect knowledge. In monopolistic competition, buyers do not know everything, but they have relatively fill in information virtually alternative prices. They also have relatively complete information about product differences and brand names. Each firm also has relatively complete information about production techniques and the prices charged by their rivals.Olig opolyAn Oligopoly in which firm is dominated by many small seller, it is the firm that selling alike product. Oligopoly is similar like monopoly but oligopoly is at least two firms give the market. The multi-national examples for oligopoly are aluminum, gas, cell phone, television and film.CharacteristicThe first characteristic under oligopoly is Interdependent. There are only few firms under oligopoly but each firm will have to take account of the others, this means that they are dependent. A firm under oligopoly not only considers the market demand, they also need to compare the price and output policies to their rivals. No firm can therefore afford to ignore the actions and reactions of other firms in the market.The second characteristic under oligopoly is they have a heavy advertising. Oligopolistic must have a heavy advertising to promote their products in the market structure, and then can give the household know about their company. Under oligopoly the advertising is such l ike life-blood for oligopolistic firm.The third characteristic under oligopoly is high barrier to entry the market. Government restrictions, copyright issue, undivided resource ownership and huge setup cost are the high barrier to oligopolistic to entry the market. Sometimes the cost is very high, ownership and control of the raw materials is a factor, patents and brand committedness are also barriers of entry into an oligopolistic market.SummarizationCharacteristic /Market StructuresPerfect CompetitionMonopolyMonopolisticCompetitionOligopolyMany BuyersMany Sellers expense TakerPrice MakerIdentical ProductDifferentiate Shape ProductBarriers To Entry And ExitPerfect KnowledgeAdvertisingConclusion