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Product Differentiation: Sources and Importance | Economics
Monopolistic Competition and Oligopoly | Economics
Effect of Taxes on the Equilibrium of the Monopolist Type # 3. Imposition of Specific Tax:
Effect of Taxes on the Equilibrium of the Monopolist Type # 2. Imposition of Profit Tax:
The effects of taxes on the monopoly profits are the same as in the case of a l...the long-run equilibrium position under monopolistic competition
Figure-4 shows the long-run equilibrium position under monopolistic competition:
Chamberlin’s Concept of Excess Capacity:
Prof. Chamberlin’s explanation of the theory of excess capacity is different from that of ideal output under perfect competition. Under perfect competition, each firm produces at the mini...
Theory of Excess Capacity under Monopolistic Competition Theory of Excess Capacity under Monopolistic Competition!
Characteristics or Main Features of Monopolistic Competition: Important characteristics of monopolistic competition are as follows: 1. Less Number of Buyers and Sellers:
In this market neither buyers nor sellers are too many as under perfect competition nor there is only one seller as under monopoly. Mostly, it is a situation in between. Every producer for ...
. Meaning of Monopolistic Competition 2. Concept of Monopolistic Competition 3. Characteristics of Monopolistic Competition. Meaning and Definition of Monopolistic Competition: Before 1933, the traditional Marshallian theory of value was prevalent.
But in 1933 a revolution in the approach to price theory was initiated by the publication of two works of modern economists, Chamberlin and Mrs. Joan Robinson.
Effect of Taxes on the Equilibrium of the Monopolist Type # 2. Imposition of Profit Tax:
The effects of taxes on the monopoly profits are the same as in the case of a lump-sum tax The profits tax reduces the monopoly profits, but the equilibrium of the market is not affected so...
The following points highlight the effects of three types of taxes on the equilibrium of the monopolist. Effect of Taxes on the Equilibrium of the Monopolist Type # 1. Imposition of a Lump-Sum tax:
In this case we need not distinguish between the short-run and the long-run because, in general, the monopolist always realizes some excess profits — both in the short-run and in the long...