Answer to Question #318834 in Microeconomics for samson

Question

. There are various market structures, under which each firm in an economy follows, these market structures range from perfect competition to monopoly. 

a) How do characteristics of a monopoly differ from those of perfect competition? 

b) . Your company operates in an oligopoly market. You have been told that nonprice competition strategies can help you increase your sales in the short run. Would you propose and explain any 3 nonprice competition campaigns that you would employ for this call?

Answer 1

Answer.

a) Monopoly has the following features, it is composed of one firm,it dictates the supply level of goods and services through its market power. Monopoly are price makers coming up with prices for products while in perfect competitive market, there is many firms,they lack market control and are only price takers and not makers.

b) Some of the non price competition strategies include :

-Free gifts to customers when they purchase products so that they get eager to obtain the gifts.

- Doing sales promotion, representatives of a company meet customers directly and explain to them about their products.

- The last one is advertising where there is the publication of the brand products.