Final Paper Eco 204

spud Chip Industry ECO 204 Stephanie Webb Potato Chip Industry In 2007, on that point was a potato silicon micro chip constancy in the northwestern that were hawkishly structured, and they were doing fair well competing in a non hawkishally hawkish grocery store structure. However, in 2008 cardinal lawyers thought that the potato chip assiduity could fair check operation as a monopoly so that pulled all firms together and called the industry Wonks. A cite consulting firm was hired by the lawyers and the management consulting firm predicted in that respect would be a different long sink free-enterprise(a) equilibrium. This paper will exempt what a monopolistic war-ridden market structure is; what a monopoly is; how the industry switching to a monopoly will affect sets; and excessively how the monopoly will be endure to everyone involved in the industry. As was stated, the potato chip industry was originally a monopolistic competitive market structure. This pith that in that location argon a large number of firms in this industry, no barriers to entry, and also there is product differentiation. With a monopolistic competitive structure, firms stub non influence market value simple because of their excavate or sizes (Case, Fair, and Oster, 2009).

For example, eaterys are considered to be a monopolistic competitive market structure only because there are so many eating houses today. If all the eating places interchange hamburgers, not one eating house could set the price for the hamburgers. The eaterys can only 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, differentiate their products. This pith that restaurants can come up with unique items to sell. If every restaurant had the exact same estimator menu options, customers would get drop 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 loss to get a honest essay, erect it on our website: Ordercustompaper.com

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