This website uses cookies to ensure you have the best experience.

# Oligopoly And Monopolistic Competition And Product Differentiation

660 words - 3 pages

Unit 8 Assignment: Oligopoly and Monopolistic Competition and Product Differentiation

Name: -
Course Number: -
Section Number: -
Unit Number: - 8
Date: -

Problem

Dr. Fine and Dr. Feelgood are the only two medical doctors offering immediate walk-in medical services in the town of Springfield. That is, they operate in a duopoly. Each doctor can charge either a high price or a low price for a standard medical visit. The accompanying matrix shows their payoffs, in profits per patient (in dollars), for any choice that the two doctors can make.
[pic]

1. Suppose the two doctors play a one-shot game—that is, they interact only once and never again. What will be the ...view middle of the document...

Fine plays “always charge the low price” when Dr. Feelgood plays “tit for tat.”

|FIRST Period |Payoffs |SECOND Period |Payoffs |TOTAL Payoffs |
| |Charges | | |Charges | | |
| |(high or low) | | |(high or low) | | |
|Fine | | |Fine | | | |

c. Dr. Fine plays “tit for tat” when Dr. Feelgood plays “always charge the low price.”

|FIRST Period |Payoffs |SECOND Period |Payoffs |TOTAL Payoffs |
| |Charges | | |Charges | | |
| |(high or low) | | |(high or low) | | |
|Fine | | |Fine | | | |

d. Dr. Fine plays “tit for tat” when Dr. Feelgood also plays “tit for tat.”

|FIRST Period |Payoffs |SECOND Period |Payoffs |TOTAL Payoffs |
| |Charges | | |Charges | | |
| |(high or low) | | |(high or low) | | |
|Fine | | |Fine | | | |

3. “In the long run, there is no difference between monopolistic competition and perfect competition.”

Discuss whether this statement is true, false or ambiguous with respect to each of the criteria listed under a, b, c, and d. Justify your answers.

a. The price charged to consumers

b. The average total cost of production

c. The efficiency of the market outcome

d. The typical firm’s profit in the long run

---------------------
References:

|Microeconomics: Unit 8 Assignment: Game Theory and Perfect Competition and monopolistic competition in the Long run |
|Content (15 points) |Points Possible |Points Earned |
|Game TheoryCorrectly calculated the non-cooperative Nash equilibrium for one-shot game. |3 | |
|Two-shot game with two strategies: “always charge the low price” or “tit...

## Other assignments on Oligopoly And Monopolistic Competition And Product Differentiation

### Market Segmentation And Product Positioning Essay

1166 words - 5 pages Assignment 1: Market Segmentation and Product Positioning Fabio Micheletto Instructor: Dr. Jean Gordon MKT500 – Marketing Management 10/23/2011 Assignment 1: Market Segmentation and Product Positioning 1. Identify the marketing segment for the product and explain why this segment was selected. 2.1 Company Description WestportAxle Corporation is an U.S. based company with its headquarters in Brazil that focuses in

### Ritz Carlton Match Up To Competition And Wow Stories

901 words - 4 pages Unit 5 Case Study – Question 1 pg 380 “The only problem the Ritz-Carlton faces, is continuous improvement, the goal of their company is to have customer satisfaction at 100%. If a guest’s experience does not meet expectations, the Ritz-Carlton risks losing that guest to competition” (Heizer & Render, 2011). Ritz was the initial hotel corporation to with the Malcolm Baldrige National Quality Award and only hotel company twice honored with this

### Business Model And Strategic Plan Part I: Conceptualizing A New Product Or Service Division Of An Existing Business

3061 words - 13 pages Professional Selling In order for a company to get off the ground, much of the time they need to sell the product through different promotional strategies. This could be through advertising or door to door sales, whatever the company feels will help sell their product. Pet Buddy is in this exact situation now as they are in the introduction phase. They are trying to get off the ground anyway they can, and in order to do so, they must get

### Four Market Structure

1481 words - 6 pages but his pricing scheme is dependent on the types of market structure; pure competition, pure monopoly, oligopoly and monopolistic competition. COMPARATIVE CHARACTERISTICS OF FOUR MARKET STRUCTURES Table 1.1 shows the comparative characteristics of 4 market structures; pure competition, pure monopoly, oligopoly and monopolistic competition based on the distinguished features such as the number of seller, the extent of product differentiation

### Distinction Between Market And Market Structure And Its Implications For Managerial Decision Making

1002 words - 5 pages towards achievement of the traditional profit maximization objective of the firm. There are four kinds of market structures that can be identified: Perfect Competition, Monopolistic Competition, Oligopoly, and Monopoly. We would examine the market structures and their effects on managerial decision making in turn. Perfect Competition Perfect competition is the idealized version of the market structure with existence of many buyers and sellers

### Netflix

1197 words - 5 pages competition. Two of Netflix’s major competitors are Blockbuster and Comcast (Schneider, 2010). Due to the limited number of competitors, it can be easily determined that they are in an oligopoly market ("Oligopoly", 2013). Even though the competition is scarce and extremely limited, there is still competition, keeping it from being a sole monopoly ("Monopoly", 2013). Unlike a monopolistic competition market not all companies are profit maximizers

### Micro Economics Mcq

2116 words - 9 pages D. Reduce both output and price  Answer: 7. Which of the following market structures would you expect to yield the greatest product variety?  A. Monopoly B. Monopolistic Competition C. Bertrand Oligopoly D. Perfect Competition Answer: 8. The primary difference between Monopolistic Competition and Perfect Competition is  A. The ease of entry and exit into the industry B. The number of firms in the market C. All of the statements

### Economics: Micro And Macro Theory And Application

1247 words - 5 pages competition between the participants in that market. The competition is held in other areas (quality, advertising, additional services). The behaviour in an oligopoly can be explained using the game theory. There are big barriers to entry and exit. Oligopoly is a form of imperfect competition, characterized by the highest degree of monopolization. Oligopolistic firms have the ability to create new institutional forms, which allows for the improvement

1983 words - 8 pages down that the oligopoly can transform into a more inclusive market structure, such as perfect competition or monopolistic competition. Mergers Mergers have been a very important part of the face of the Canadian banking industry. As the banks have evolved and grown the need to expand has deepened for many banks. Over the years banks, along with other Canadian financial institutions have merged and been acquired, affecting the ranking of the

### Pricing Strategy

1998 words - 8 pages the battery industry has a large amount of competition. A monopolistic competition structure has a large amount of competition, control over prices and strong importance of advertising. Since the product is a necessary addition to products already in the market, the company has a little opportunity to differentiate their products. It has to meet certain criteria to fit and operate in products such as laptops and toys. This causes the

### Victor Cheng

317 words - 2 pages Customer Company Product Competition Who is the customer? - identify segments (segment size, growth rate, % of total market) - compare current year metrics to historical metrics (look for trends) What does each customer segment want? - identify keys needs What price is each segment willing to pay? - determine price points and price elasticity/sensitivity Distribution channel preference for each segment Customer concentration and power

## Similar Documents

### Consider Singapore Retail Firms (Retailers) And Discuss If Oligopoly Or Monopolistic Competition Best Explains These Retailers’ Market Behaviour

612 words - 3 pages . Also, it should be argued that there is product differentiation for monopolistic competition, because different clothing retail shops have different clothing designs, for instance, Charles and Keith clothing shops specialise in women’s clothing and special types of clothes we love to buy. These monopolistic competitive clothing shops typically engage in price competition which implies that they do and will lower their prices all round if they are

### Economic Incentives And Global Competition Essay

2265 words - 10 pages Economic Incentives and Global Competition Florida Institute of Technology MGT 5100 The primary goal of state and municipal governments offering economic incentives was intended to encourage job creation. Because global competition facing U.S. companies has progressively increased over the years, domestic companies have been faced with two primary options in order to remain competitive; move their operations to lower labor cost regions

### Competition Between Elimination And Substitution In Haloalkane

327 words - 2 pages Competition Between Elimination and Substitution in Haloalkane 1.0 ABSTRACT The main focus of this study is to study the competition between substitution and elimination of haloalkanes. Substitution of haloalkanes This report will explain the two types of SN1 and SN2 reactions. Later, the factors which influence both SN1 and SN2 reactions will be explained and competition between the two different types of substitutions will be further

### Marketing Segmentation And Product Positioning Essay

1370 words - 6 pages Marketing Segmentation and Product Positioning Marketing Segmentation and Product Positioning According to the author, Dawn Iacobucci of our textbook, Marketing Management, in our society economists say that “imperfect competition exists” meaning that “consumers have unique needs and desires; so collectively, a marketplace of consumers is heterogeneous“ (Iacobucci, 2010, p. 15). This methodology takes into account the distinction and