Economics help?

[-Kwesnoth-]

Can anyone answer these 5 questions for me?

1. Discuss some of the ways a monopolistic competitor might achieve product differentiation.

2. Briefly discuss how monopolistic competitive firms maximize profit or minimize loss in the short run.

3. Why is excess capacity a characteristic of a monopolistic competitive firm in the long run?

4. Oligopolies are characterized by strategic behavior and mutual interdependence. What does that mean?

5. Discuss the Price Leadership Model.

Any help would be immensely appreciated.

Thanks

[Morganator]

Can anyone answer these 5 questions for me?

I will attempt it.

1. Discuss some of the ways a monopolistic competitor might achieve product differentiation.

Advertising blitz, point out the negatives of the competitor(s)' product, pointing out the price for features ratios.

2. Briefly discuss how monopolistic competitive firms maximize profit or minimize loss in the short run.

Charging fees for extra features on products and/or services, offering stripped down products and/or services i.e. the economy model, temporary layoffs or reductions in workforce.

3. Why is excess capacity a characteristic of a monopolistic competitive firm in the long run?

It is what monopolistic competitive firms use to "flood" the markets in the short term thus driving out the competition for the long term. You take the hit in the short term to improve your position in the long term.

4. Oligopolies are characterized by strategic behavior and mutual interdependence. What does that mean?

It means that corporations that are in Oligopolies rely on the concept that they can shape, define and push the markets in their respective sectors in directions that favor the Oligopolies. The most notable of Oligopolies is the Banking Industry or Central Banks of each nation. By setting interest rates, the money supply, price fixing measures and lending schemes, they can effectively move the market in the direction that benefits them the most.

5. Discuss the Price Leadership Model.

The price leadership model is when the dominant corporation is able to set prices at an industry-wide level while still remaining profitable. Oftentimes, it is just enough to remain competitive and profitable while allowing other corporations to be the same.

Any help would be immensely appreciated.

Thanks

I hope I got the majority of this correct and didn't lead you astray.

[-Kwesnoth-]

I wish I could gang rep you for that Morganator!

Thank you sooo much!

[Morganator]

I wish I could gang rep you for that Morganator!

Thank you sooo much!

No problem Kwesnoth. It was actually kinda fun trying to remember a lot of that stuff. (I didn't take economics though I've been teaching myself. It's the only way to get an unbiased education on the matter.)