Market that is Monopolistic competition
As a TEAM, identify a market that your team believe is “oligopolistic” or “monopolistic competition.” Your text can help you with this. You can NOT pick a product that was selected last week or this week by yourself, classmate or another team (well not if you want credit for it anyways).
Tell us why the market you selected meets the criteria of an oligopoly or monopolistic competition. Then tell us what that means for rational business price and production decisions.
Evaluate the result in (2) from perspectives of efficiency and equity drawing upon price/cost margins for your explanation. Click on the highlighted terms above if you are unclear on this.You may want to also consider issues involving the stability of collusive cartels.
Please start with your assigned study teams. If you find yourself solo after Tuesday midnight (C.S.T.) because of team inactivity, you may join with another solo classmate.As always, you will profit by reading and responding to your fellow budding economists’ postings.