The Potato Chip Industry As a Monopolistic Competi

The Potato Chip Industry as a noncompetitive Competitive Industry
Prof. Harvey Criswell
ECO 204
October 17, 2011

The Potato Chip Industry as a Monopolistic Competitive Industry
The stump spud microprocessor chip industry in the Northwest in 2007 was competitively social systemd and in long competitive equilibrium; firms were earning a normal rate of cash in ones chips and were competing in a monopolistically competitive market structure. In 2008, cardinal smart lawyers quietly bought up all the firms and began operations as a monopoly called Wonks. To operate efficiently, Wonks hired a management consulting firm, which estimated a different long-run competitive equilibrium. This paper will pout the benefits of this new monopoly, the changes which will occur in price and product of the product in this particular type of market structure; and market structure that will most benefit the Wonks potato chip monopoly.
[Economists divide market conditions into four major categories: (1) monopoly, (2) unmixed competition, (3) monopolistic competition, and (4) oligopoly. In a monopoly, a single companionship supplies a product or service for which buyers cannot find a close substitute. A monopoly may arise when one club can supply a given commodity more cheaply than two or more companies can.



Such indwelling monopolies often include utilities that provide electric power, gas, or water. A grocery store in a small stray town may be a monopoly. Internet shop has tended to break down monopolies, because buyers have access to companies around the world.] (H.J. Aaron 2011)
By operating as a monopoly Wonk potato chip firm has created a market that cannot be interfered with by effectiveness competitors. The term monopoly lacks precise definition but it is generally understand to mean that substantial unity of action which gives the seller or sellers control of price. (E. E. Agger1913 p.591). A monopoly is a market structure in which there is only one manufacturer and or seller for a product....If you want to get a full essay, order it on our website: Orderessay



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