Monopolistic competition
Monopolistic competition is a form of competition that characterizes number of industries in consumers everyday life.
As you can see, this monopolistic competition at the local level we have McDonald’s and Burger King, just right across the street from each other. Both are obviously high competitors, so when one got built the other business went up in order to have that monopolistic competition that both companies are seeking.
For this global monopolistic competition we have the 2 competitors that obviously took different routes in chasing the monopoly. One of Apples headquarters being in Ireland to secure that area as a monopoly, and Microsoft’s headquarters being in Redmond, Washington. Apple chose to have one of their headquarters in Ireland to get a break from taxes, which systematically is working good for them so far. With Microsoft’s headquarters being in Washington.
National Impact
-Monopoly firm can restrict output and raise prices
-The inequality of price and marginal cost makes it inefficient
-No significant barriers for entry, all across the globe
Positive and Negative affects of monopolistic competition
-Anyone can enter the field, few barriers preventing you from getting into the field
-Customers of the competition can obtain great products and services since they are differentiated.
-Higher Quality of products
-Restricting output on the market
-Charging a higher price than in a more competitive market
Stakeholders
The market structure of monopolistic competition has a lot to do with stakeholders. Stakeholders rely on monopolistic competition because of their interest within the business or the goods that the business is giving out. Stakeholders can either make a monopolistic competitors business boom, or bust.
Conclusion
I think monopolistic competition will only increase as the year goes on. Many more companies and people will break that barrier of getting started into monopolistic competition and they will be competing with top companies we see today. Monopolistic competition is pretty much everywhere.
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