Different Market Structure and their Effects on Consumers and Producers

《Different Market Structure and their Effects on Consumers and Producers》由会员上传分享，免费在线阅读，更多相关内容在学术论文-天天文库。

1、DifferentMarketStructureandtheirEffectsonConsumersandProducersMonopolisticcompetitionandoligopolymarketstructureexistinsomebusinessareasinoursociety.Asthesocietydeveloped,moreandmoredifferentgoodscomeintoourlife.Whenpeoplechoosegoodsthattheywant,somepeoplemakedeci

2、sionsbasedonthegood’sprice,andanotherpeoplechoosegoodsdecideontheperformanceoftheproducts,forexample,somepeoplejustuseexclusivecosmetic,thissituationiscalledbrandloyalty(IsonandWall,2006,p148).Thisessaywillshowwhichmarketstructureisbetterforconsumer.Firstly,thises

3、saywilldefinethemonopolisticcompetitionmarketstructureandoligopolymarketstructure.AfterthedefinitionsIwillshowtheireffectsonconsumersandproducer.Finally,thisessaywillcomparethetwomarketstructures.Firstly,thisessaywillgivedefinitionsofmonopolisticcompetitionmarkets

4、tructure.Asthetermsuggests,thetheoryofmonopolisticcompetitionincorporatesfeaturesofbothperfectcompetitionandmonopoly(SamuelsonandMarks,2006,p455).Thesameastheperfectcompetitionmarket,therearemanysellersinthemonopolisticcompetitionmarket.However,“unlikeperfectcompe

5、titioneachfirmproducesgoodsandserviceswhichareslightlydifferentfromthoseoftheircompetitors”(Ison,andWall,2006,p147),forinstance,differentfirmsproducethesimilarproductshavedifferentperformanceanddifferentpackaging.Insuchamarket,manyconsumershaveaproduct-dependent,t

6、herefore,“firmsinthemonopolisticcompetitionmarkethaveacertaindegreeofmonopolypower,sothatiftheyraisetheirpricetheydonotlosealloftheircustomers”(Ison,andWall,2006,p148).Intheshort-run,somefirmshavetheirownmonopolystatusinsomeconsumersandtheshort-runequilibriumissim

7、ilartothatofamonopolyinthemonopolisticcompetitionmarket.5Oligopolyreferstothereareonlyasmallnumberofsellersinthemarket,infact,thenumberoffirmsinanoligopolymarket“maybeassmallastwoorasmanyaseighttoten”(SamuelsonandMarks,2006,p473).Thosefewfirmscontrolthewholemarket

8、,andthegoodssuppliedbythesefirmsaccountedforthelargestshareofthemarket.“Inthissense,thefatesofoligopolyfirmsareinterdependent”(SamuelsonandMarks,2006,p4