Advantages And Disadvantages Of Monopolistic Competition

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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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Some telecommunication customers experience no benefits from the purchased product. Then the tendency of changing the product will incur. Changing unit is the best that the most company/s can offer to the buyers. This is for the reason to uplift the satisfaction of the customer and not to get back the payment. In line with it, branding does not always requires best value or does not always the signal that it is the best quality. Sometimes, similar products that perform similar features are better than the expensive one. In a way that its functions brings really high level of buyers satisfaction. Also the benefit that buyers got from it, compensates the price that has been offered or from the expense that the buyer’s

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