Think about a pure monopoly, monopolistic competition, and oligopoly from the
economic and then...

Question

Think about a pure monopoly, monopolistic competition, and oligopoly from the 
economic and then from a consumer perspective. Then, post a response to the 
following:

1. As a consumer, what are the advantages and disadvantages of each of these 
industry structures?
2. To an economy, what are the advantages and disadvantages of each of these 
industry structures?3. Do private and social interests coincide under these 
industry structures? Give examples to support your reasoning.Please write the questions and answers.

Robert · Accepted Answer

hink about a pure monopoly, monopolistic competition, and oligopoly from the economic and then from a consumer perspective. Then, post a response to the following:
 1. As a consumer, what are the advantages and disadvantages of each of these industry structures?
Each of these structures differs in the monopoly power enjoyed by the firm. Clearly the maximum power is with the monopolist , while the firm in monopolistic competition has the least power. As a consumer, a monopoly is disadvantageous as it charges the highest price possible from me and gives me no other choice in terms of variety. Consider an upmarket luxury store that offers hand- made jewellery. This firm charges a high price as it is the only store that stocks this jewellery. It can charge a price that is my reservation price-the highest price that i am willing to pay, leaving me with no consumer surplus at all. In an oligopoly I have some choice as the no of firms is limited, but the maximum choice is in mc.

Think about a pure monopoly, monopolistic competition, and oligopoly from the economic and then from a consumer perspective. Then, post a response to the following: 1. As a consumer, what are the...

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