Traditional Culture Encyclopedia - Traditional customs - What are the meanings and characteristics of the market structure of monopolistic competition?
What are the meanings and characteristics of the market structure of monopolistic competition?
The characteristics of monopoly competitive market Monopoly competitive market is relatively competitive, relatively close to perfect competition, and much more realistic, which is widespread in retail, handicraft and printing industries in big cities. Generally speaking, this market has the following characteristics. 1. There are many manufacturers in the market, and each manufacturer has to accept the market price to a certain extent, but each manufacturer can exert a certain degree of influence on the market and does not fully accept the market price. In addition, manufacturers cannot collude with each other to control the market. For consumers, the situation is similar. In this way, the economic man who monopolizes the competitive market is the influencer of the market price. 2. In an interdependent market, every economic person thinks that he can act independently of each other. One person's decision has little influence on others and is not easy to be detected. You can ignore other people's confrontational behavior. 3. Product differences The products of different manufacturers in the same industry are different from each other, no matter the quality, function or immaterial (such as packaging, trademarks and advertisements). ) or in terms of sales conditions (such as geographical location, service attitude and methods, which lead consumers to prefer this product to that). Product difference is the root cause of monopoly of manufacturers, but because the difference between products in the same industry is not so great that products can't replace each other at all, a certain degree of mutual substitution makes manufacturers compete with each other, so mutual substitution is the root cause of competition among manufacturers. If you want to tell the meaning of product difference accurately, you can say this: at the same price, if the buyer shows special interest in the products of a certain manufacturer, it means that the products of this manufacturer are different from those of other manufacturers in the same industry. 4. It is easier for manufacturers to enter and leave an industry. This is similar to perfect competition. The scale of manufacturers is not very large, and the funds needed are not too much. It is easy to enter and exit an industry, and there are few obstacles. -
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