Monopolistic Competition Research Paper Example | Topics and Well Written Essays - 750 words

Monopolistic Competition - Research Paper Example This similarity is obtained due to product differentiation portrayed either physically, by perception, or by support services. Most importantly, customers view these goods as similar since they serve the same purpose. Monopolistic competition advocates free entry into market and free exit. This enables new firms to come up with close substitutes thus enhancing competition. In a free market, a firm faces no restrictions from the government rules, financial start-up, or other considerable barriers. Additionally, free entry and exit in the market maintains profit maximization of a firm for a longer span of time. Selling price is a unique characteristic in monopolistic competition (Baumol, 2011). A firm is ever independent in decision-making. Each firm decides on commodity price and output. The seller sets the price of a good depending on circumstances. These variations of price arise due to product differentiation and other additional expenditures. Nike and Asics portray an example of two firms in the sneaker industry, which exhibits monopolistic competition. In order to ensure maximum competition, in the large monopolistic market, Nike and Asics need to emphasize on product differentiation to attract customers. The factors that need consideration during differentiation include style, appearance, quality, performance, close substitute of the goods (Arora, 2007). Since both firms produce similar product, there is need for a difference in the products that will attract the buyers. Different buyers have different perceptions on the kind of shoe to wear or the kind of shoe they feel comfortable with while wearing. The style of shoe tells a lot about an individual. Therefore, it is important for the two firms to first strategize and research on the style of shoe that most people prefer. This will enable the firm produce the shoe and ultimately sell it without much competition. Moreover, it is

Assignment Essay Example | Topics and Well Written Essays - 500 words - 80

Assignment - Essay Example The disease is also causes fever, and red skin-spots that later turn black, thus the name â€Å"Black Death†. The disease reached Europe through The Black Sea in October 1347 when 12 Genoese trade ships arrived at Messina’s Sicilian port. The Genoese ships’ passengers on board were already plague-infected. The strategic location of China as one of the world’s significant trading nations facilitated the spread of the Black Death into Europe and Western Asia. The Black Death rapidly spread in â€Å"Europe from Italy, France, Spain, Portugal, England, Germany, Scandinavia, Norway, Bergen, Iceland, to northwestern Russia.†3 The medieval society was tremendously influenced by the Black Death. To begin with, there was starvation in the villages because the laborers died. The men who were supposed to plough fields died. The lack of labor also affected the harvesting, and livestock farming. In the urban areas, the effects of the Black Death were directly proportional to the impacts in the rural areas. A number of people migrated from the urban areas to the rural areas because it was believed that the fleas causing the Black Death was common in the urban areas. The urban areas suffered lack of food because the primary suppliers of food, who were the surrounding villages, could not supply adequate food. The loss of labor through deaths led to the lords resorting to sheep farming, as opposed to earlier grain farming. There was also shortage of commodities like bread because of the decline in grain farming. The prices of food in the urban areas skyrocketed because of the inflation. The inflation resulted into workers demanding for better pay, leading to the 1381’s Peasants Revolt in Europe when the landlords were hesitant to heed to the peasants’ demands.4 There were huge disruptions in the medieval world because of the Black Death. The Black Death led to the establishment of Feudal law restricting the movement of peasants, unless authorized by