BRAND Monopolistic Competition YIngU2 TO WAI Monopolistic competition is characterized by an industry where many producers sell products or services that are similar, yet not perfect substitutes. As such, it is often regarded as a type of imperfect competition. Barriers to entry are low and the action of any firm or group does not directly affect its competitors. Some examples of monopolistic competition include retail stores, hotel and restaurant business, and fashion apparel. Louis Vuitton is one specific example because it does business in a competitive fashion industry, except that its luxury bags are not exactly like the luxury bags of its competitors, such as Hermes and Prada.How does the Market influence Supply and Demand? bima roweq a vrinooo add to 10187ago 10 vigqua ard alondon solsred) bas In any market transaction between 19 producers and consumers, the price of the good or service is determined by the market supply and demand. Supply and demand are, in turn, determined by the market structures under which these market forces operate. At one point, the market could be populated by a large number of identical buyers and sellers. At another point, it is also possible that there might only be a single buyer and seller. The market structure could be classified as a perfect competition, monopoly, oligopoly, or monopolistic competition. Philippine Copyright techFactorshas 55. gcan this image to learn more about Market Structures - SCAN HERE N Em perfect Competition Perfect competition is a type of market structure where there are many buyers and sellers competing against each other with homogenous or similar products. No barriers prevent new suppliers from entering the market and no one has the ability to control or influence market prices. Perfect competition exists arERthe foreign exchange markets and some agricultural sectors where several farmers are selling identical products to the market. Monopoly A monopoly can be considered an extreme type of market structure whereby a single firm or group controls nearly all of the market for a particular good or service. Thus, in this market situation, consumers have no choice but to buy from the monopolist. Examples are distribution utilities, such as the Manila Electric Company (MERALCO), which is the sole distributor of electricity to households in Metro Manila and nearby provinces. Another is the National Grid Corporation of the Philippines (NGCP), which is the sole operator of the country's power grid, and therefore, controls the supply of power. Due to this nature, governments regulate monopolies to ensure that they do not abuse their market power. Oligopoly An oligopoly is a marke wherein few dominant firmts jrtr;r(g:; control a market. It is characterized by an industry dominated by a small number of producers, selling either homogenous or differentiat(gi products with limited competition | and has significant barriers to entry. A perfect example of thi _ structure is Pthe .tth-ls type of market industry. ; 'flcom_m\\lnications . Read your book about market structure. Prioritize information found in the book. However, if certain questions cannot be answered via the book, you may use the internet. Create a table (Landscape). Using the table, classify the different market structures (oligopoly, monopoly, perfect competition, and monopolistic competition) through the following: a) Number of firms (2 points if everything is complete, 1 point of some are incorrect/missing) b) Ease of entry (2 points if everything is complete, 1 point of some are incorrect/missing) c) Type of product (just tell whether it is identical or differentiated). (2 points if everything is complete, 1 point of some are incorrect/missing) d) Example for each type of market structure (can be theoretical or real). For perfect competition, you can use purely theoretical examples or made-up examples as it does not exist in real life. (2 points if everything is complete, 1 point of some are incorrect/missing) Why do you think perfect competition is only theoretical and not actually present in real life? (2 points if the answer has depth, 1 point of it is a bit shallow) What are the dangers of oligopolies and monopolies to consumers? (2 points if the answer has depth, 1 pointofit is a bit shallow) As a follow-up, what does the government do regarding the presence of oligopolies and monopolies? (2 points if the answer has depth, 1 point of itis a bit shaLLDW)|