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ECON 294 Monopolistically Competitive and Oligopolistic Product Markets

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Need help on week 5 ECON 294 Monopolistically Competitive and Oligopolistic Product Markets;the need help looking for more information about Model- cell Phone for implication of equity please Week 5 Discussion: Monopolistically;Competitive and Oligopolistic Product;Markets;JohnNash;OligopolyorMonopolisticCompetition,andthatmeansTeamWork;Again!Youareaskedtocollude.Youareaskedtocollaboratewithat;leastoneotherclassmateandthatmeansYourStudyGroup.Your;Groupneedstochoosetopostathreadforoneofthetwomodelsbelow;(OligopolyorMonopolisticCompetition).;Note:Noneedforyourteamtopostinboth,butitisnecessarythatyou;respondtoyourfellowclassmates'selections!;Option #1: If You Choose an Oligopoly.;Howwouldarationalbusinesspersonformulateproductionand;pricingstrategiesinanoligopolisticmarket?;Reviewthekeycharacteristicsofoligopolisticmarketsinyourtextand;theexpectedoutcomesforthevarioussituationsdescribed.Youmay;findapayoffmatrixhelpfulinunderstandingthemutualinterdependence;betweenproducersinanoligopoly.JohnNash(asplayedbyRussell;CroweinABeautifulMind)certainlydid.;ThinkaboutsomerealworldmarketswhichcomeclosetotheOligopoly;characteristics.Finally,whataretheimplicationsforefficiencyand;equity?Youshouldnotehowprice/costmarginsinthelongrun;equilibriumsituationsforthesemarkets.Ispriceequaltoaveragecost?If;so,neitherproducerorconsumerisunfairlyrippedoff.Ispriceequalto;minimumaveragecost?Ifsothentheengineersmustbehappyasthere;isnootheroutputlevelyieldinghigherproductivityandlowercostandwe;haveproductiveefficiency.Ispriceequaltomarginalcost?Ifsothen;thereisnoreallocationofresourceswhichwouldmakesocietybetteroff;andwehaveallocativeefficiency.Alternatively,agivenmarketisunfair;toconsumersifpriceisgreaterthanmarginalcost,productivityinefficient;ifpriceisgreaterthanminimumaveragecost,andallocativelyinefficient;ifpriceisgreaterthanmarginalcostsincewevaluemoreofthegoodin;questionthanothergoodsthatarecurrentlybeingproducedwiththe;sameresources.Thinkaboutthesethings(characteristicsofoligopoly;resultingbehaviorbybusinessdecisionmakers,consequentprice/cost;margins,andimplicationsforefficiencyandequity).;Option #2: If you Choose a Monopolistic Competition;Market.;Howwouldarationalbusinesspersonformulateproductionand;pricingstrategiesinamonopolisticallycompetitivemarket?;Reviewthekeycharacteristicsofmonopolisticallycompetitivemarketsin;yourtextandtheexpectedoutcomesforthevarioussituationsillustrated;above.Thinkaboutrealworldproductsandserviceswhichcomecloseto;thosecharacteristics.Infact,youwillfindthatmostofwhatyouprobably;buyonadailybasisaremonopolisticallycompetitiveproducts.You;shouldnotehowprice/costmarginsinthelongrunequilibriumsituations;forthesemarkets.Ispriceequaltoaveragecost?Ifso,neitherproducer;orconsumerisunfairlyrippedoff.Ispriceequaltominimumaverage;cost?Ifso,thentheengineersmustbehappyasthereisnootheroutput;levelyieldinghigherproductivityandlowercostandwehaveproductive;efficiency.Ispriceequaltomarginalcost?Ifso,thenthereisno;reallocationofresourceswhichwouldmakesocietybetteroffandwe;haveallocativeefficiency.Alternatively,agivenmarketisunfairto;consumersifpriceisgreaterthanmarginalcost,productivityinefficientif;priceisgreaterthanminimumaveragecost,andallocativelyinefficientif;priceisgreaterthanmarginalcostsincewevaluemoreofthegoodin;questionthanothergoodsthatarecurrentlybeingproducedwiththe;sameresources.;Here's what I would like you to do;AsaTEAM,identifyamarketthatyourteambelieveis;oligopolistic"or"monopolisticcompetition."Yourtextcanhelpyouwith;this.YoucanNOTpickaproductthatwasselectedlastweekorthis;weekbyyourself,classmateoranotherteam(wellnotifyouwantcredit;foritanyways).;1.;Telluswhythemarketyouselectedmeetsthecriteriaofan;oligopolyormonopolisticcompetition.Thentelluswhatthatmeansfor;rationalbusinesspriceandproductiondecisions.;2.;Evaluatetheresultin(2)fromperspectivesofefficiencyand;equitydrawinguponprice/costmarginsforyourexplanation.Clickonthe;highlightedtermsaboveifyouareunclearonthis.Youmaywanttoalso;considerissuesinvolvingthestabilityofcollusivecartels.Pleasestart;withyourassignedstudyteams.IfyoufindyourselfsoloafterTuesday;midnight(C.S.T.)becauseofteaminactivity,youmayjoinwithanother;soloclassmate.Asalways,youwillprofitbyreadingandrespondingto;yourfellowbuddingeconomists'postings.;3.;Due Date Reminder

 

Paper#15218 | Written in 18-Jul-2015

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