Category: study guides
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Concepts of Proportional and Perceived Demand Curve:
We have said that monopolistic competition is an amalgam of perfect competition and monopoly. A monopolistically competitive firm does not face a horizontal demand curve. On the other hand, a competitive firm experiences horizontal demand curve since products by all firms are homogeneous. Product differentiation, however, is one of the chief assumptions of monopolistic competition.…
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Notes on Monopolistic Competition: Meaning and Characteristics Monopolistic Competition: Meaning and Characteristics!
Meaning Monopolistic Competition: The two important subdivisions of imperfect competition are monopolistic competition and oligopoly. Most of the economic situations “are composites of both perfect competition and monopoly”. Chamberlin’s monopolistic competition is an amalgam or an admixture of perfect competition and monopoly. Thus, monopolistic competition has elements of both perfect competition and monopoly. That is…
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Chamberlin’s Model of Monopolistic Competition
Chamberlin’s theory has been attacked on several grounds. Some of the criticisms are valid while others do not stand up to a closer examination. The assumptions of product differentiation and of independent action by the competitors are inconsistent. It is a fact that firms are continuously aware of the actions of competitors whose products are…
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Equilibrium Price and Output under Monopolistic Competition: Short Run Equilibrium:
According to Prof. Chamberlin, the firm under monopolistic competition has to make a wider range of decisions than under perfect competition. The firm may vary its price and with it, its sales and output; it may vary the quality of its product and it may engage in sales-promotion activities such as advertisement, publicity and propaganda,…
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Main Features of Monopolistic Competition The main features of monopolistic competition are as under: 1. Large Number of Buyers and Sellers:
Main Features of Monopolistic Competition The main features of monopolistic competition are as under: 1. Large Number of Buyers and Sellers: There are large number of firms but not as large as under perfect competition. That means each firm can control its price-output policy to some extent. It is assumed that any price-output policy of…
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Price-Output Equilibrium under Monopolistic Competition: Equilibrium in Short-Run and Long Run!
Under monopolistic competition, organizations need to make optimum adjustments in the prices and output sold to attain equilibrium. Apart from this, under monopolistic competition, organizations also need to pay attention toward the design of the product and the way the product is promoted in the market. Moreover, an organization under monopolistic competition is not…
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Demand and Marginal Revenue Curves (With Diagram)
In monopolistic competition, the demand curve is relatively elastic, due to availability of close substitutes in monopolistic competition have limited power to decide and regulate the prices of their products. This is because if sellers increase the prices of products, customers may switch to nearest competitors to avail the close substitutes. Due to large number…
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Price and Output Determination under Monopoly
Monopoly refers to a market structure in which there is a single producer or seller that has a control on the entire market. This single seller deals in the products that have no close substitutes and has a direct demand, supply, and prices of a product. Therefore, in monopoly, there is no distinction between an…
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simplify product group analysis, Chamberlin has given two assumptions, which are as follows:
i. He assumed that the demand and cost curves of all products forming the group are the same or uniform. This assumption is termed as uniformity assumption. According to this assumption, the preferences of consumers are evenly distributed and the difference in preferences is not that much to give rise to variation in cost.…
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Differentiate among the concepts of nursing philosophy, nursing science, and philosophy of science
The nursing philosophy refers to an individual’s perspectives and attitudes which are part of his or her held beliefs regarding the nursing profession. It is a reflection of the purpose of their nursing practice since they will have goals of creating a specific type of impact on the population (Meehan, Timmins & Burke, 2018). Therefore,…