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Influence of Selling Costs on the Demand Curve:
The purpose of selling costs is to influence the demand curve for the product of a firm or group. A producer incurs selling costs in order to push up his sales. Therefore, all selling costs...
The Curve of Selling Costs and Its Influence on Production Costs:
The curve of selling costs is a tool of economic analysis forged by Prof. Chamberlain. It is a curve of average selling cost per unit of product. It is akin to the average cost curve and li...
Essay # 4. Theory of Excess Capacity:
The doctrine of excess (or unutilized) capacity is associated with monopolistic competition in the long-run and is defined as “the difference between ideal (optimum) output and t...
Essay # 3. Chamberlin’s Group Equilibrium: Concept of Industry and Group:
Group equilibrium relates to the equilibrium of the “industry” under a monopolistic competitive market. The word “industry” refers to all the firms producing a homogeneous product. ...
Essay # 2. Price Determination of a Firm under Monopolistic Competition:
The equilibrium of the firm under monopolistic competition follows the usual analysis in the short-run and long-run.
(A) Short-Run Equilibrium Assumptions:
The short-ru...The below mentioned article provides an appraisal of Chamberlin’s model of monopolistic competition
Since late 1920s and early 1930s, economists are aware of the limitations of competition and monopoly analyses, and from that time on, they turned their attention to the middle ground betwee...
In this article we will discuss about the equilibrium of a firm under monopolistic competition. Assumptions of Equilibrium Analysis of a Firm:
The equilibrium analysis of a firm under monopolistic competition is based on the following assumptions that are peculiar to monopolistic competition. (i) The firms here produce products...
In this article we will discuss about the competitive and monopolistic aspects of monopolistic competition.
The competitive aspect of monopolistic competition lies in the fact that in this model, a large number of producers compete with each other in producing and selling close-substitute products...
The impact of product differentiation on market structure depends on the ability of some firms to secure strong advantages over others in this field. This may be the result of heavy advertising and other forms of sales promotion.
“The impact of product differentiation on market structure depends on the ability of some firms to secure strong advantages over others in this field. This may be the result of heavy adverti...