Final Paper Eco 204

Potato Chip Industry

ECO 204
Stephanie Webb

Potato Chip Industry
In 2007, on that point was a potato silicon chip industry in the northwestern that were hawkishly structured, and they were doing fairly well competing in a monopolistically hawkish market structure. However, in 2008 two lawyers thought that the potato chip industry could fair better operation as a monopoly so that pulled all firms together and called the industry Wonks. A charge consulting firm was hired by the lawyers and the management consulting firm predicted in that respect would be a different long run free-enterprise(a) equilibrium. This paper will explain what a monopolistic competitive market structure is; what a monopoly is; how the industry switching to a monopoly will affect sets; and also how the monopoly will be sound to everyone involved in the industry.
As was stated, the potato chip industry was originally a monopolistic competitive market structure. This content that there are a large number of firms in this industry, no barriers to entry, and also there is product differentiation. With a monopolistic competitive structure, firms cannot influence market price simple because of their surface or sizes (Case, Fair, and Oster, 2009).



For example, eaterys are considered to be a monopolistic competitive market structure simply because there are so many restaurants today. If all the restaurants sold hamburgers, not one restaurant could set the price for the hamburgers. The restaurants can only decide what their price will be for the hamburgers, not what all of the other restaurants should be having customers pay for hamburgers.

Restaurants can, however, differentiate their products. This means that restaurants can come up with unique items to sell. If every restaurant had the exact same computer menu options, customers would get sick of the same things. By providing restaurant specials that no other restaurant provides, the restaurant is ensuring that their menu options are large and better than the...If you want to get a full essay, erect it on our website: Orderessay



If you want to get a full essay, wisit our page: write my essay .