Advantages And Disadvantages Of Monopolistic Competition
In business industry, MONOPOLISTIC define as a competition which models are used under the rubic of imperfect competition. This model is a derivative of monopolistic competition. According to Catherine Capozzi, Demand Media, monopolistic competition is a business atmosphere where competitors can set and manipulate prices with little to no consequences as a result of their strong product differentiation. Examples of monopolistic businesses include Microsoft, Sirius and XM Radio and Jostens, a company that is often the sole provider of class rings in high schools and colleges. Companies that purvey products in this setting have several advantages.
In pricing, the primary advantage of monopolistic competition is the ability to set higher prices. Because even if they set high prices, company’s in monopolistic competition know that peopl will still use or patronize their product. For example, cellular phone. In today’s world, even young individuals has there own cellular phone. What ever brand it may has, althoug it is not people’s needs but wants. People will still aspire to buy it. Not only
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