What is the definition of the term monopolistic competitive market?

Monopolistic competitive market.

A market organization in which many manufacturers produce and sell the same kind of goods with different differences is called monopolistic market competition.

The explanation of the term is that monopolistic competition is one of the main forms of the market, and the concept in economics is that the market structure is infinitely close to perfect competition.

Monopoly refers to the manipulation and control of the production, sale and control of commodities in one or several sectors by a small number of large capitalist enterprises through mutual agreements or alliances in order to obtain high profits.

Monopoly, as an economic phenomenon, appears in capitalist society, which is the antithesis of competition and the inevitable result of the development of competition. Lenin also pointed out that when concentration develops to a certain stage, it can be said that it naturally leads to monopoly. Because dozens of large enterprises easily come to an agreement with each other; On the other hand, it is the huge scale of enterprises that makes it difficult to compete and gives rise to a tendency to monopolize.

Monopoly refers to the determination of international monopoly organizations by using certain economic forces and market control forces. In the world market, there are two kinds of international monopolies: one is the seller's monopoly and the other is the buyer's monopoly.

The former is higher than the international value of the commodity**; The latter is below the international value of the commodity**. Under both types of monopolies**, monopoly excess profits can be obtained.

Manner. First, the seller monopolies**, and second, the buyer monopolies**.

Under these two types of monopolies**, monopoly excess profits can be obtained. The upper limit of the monopoly** depends on the demand in the world market for the goods sold by the international monopoly, and the lower limit depends on the cost of production plus the average profit of the country in which the international monopoly is located. Since monopoly does not preclude competition, monopoly ** also has an objectively defined boundary.

It is artificially formulated by the monopoly industry, it is not affected by the market and exists independently, it is not regulated by the market competition mechanism and is independent without change, it is an independent factor in the market. With the development of the economy and the continuous changes of the market, the products or commodities of various industries are also constantly changing, and they are constantly tending to be reasonable. However, the "monopoly" has maintained the constant ** set by man.

Causes of formation. The formation of monopoly ** does not negate the law of value. Here's why:

1) It is impossible for a monopoly to be completely detached from the value of a commodity, and it is impossible for a monopoly organization to arbitrarily raise or decrease the value of a commodity. Its changes are still subject to competition and supply and demand to varying degrees.

2) Monopoly has not changed the consistency of the total amount of commodities and the total value of commodities in the whole society; The monopoly profits obtained by the monopoly organization through monopoly ** or monopoly low prices are only the part of the value lost by the producers of other commodities.

3) The determination and change of monopoly ** still depends in the final analysis on the amount and change of the amount of socially necessary labor time consumed in the production of commodities. Therefore, monopoly ** only changes the manifestation of the action of the law of value, and it is only a new change in the form of the law of value during the period of monopoly capitalism.

Oligopoly market.

An oligopoly market is a market model between complete monopoly and monopolistic competition, which refers to a market in which the vast majority of a certain product is controlled by a few large enterprises. Each large enterprise has a considerable share of the corresponding market and has a significant impact on the market. For example, steel and automobiles in the United States, household appliances in Japan and other large-scale industries.

Under such market conditions, the commodity market** is not determined by market supply and demand, but by several large enterprises through agreement or tacit agreement. After the formation of such an alliance**, it generally does not change for a long time. This is because:

A single manufacturer has reduced the **, which will cause competitors to compete for price reduction, and the result can only be a lose-lose situation, and everyone will reduce their income; If the first level is raised, it means that the market share is reduced, and the gains outweigh the losses. [1]

Monopolistic competitive market.

It refers to a market that has both monopoly and competition, is neither perfect competition nor complete monopoly, and is a market between perfect competition and complete monopoly.

Head monopoly market.

It is a relatively realistic mixed market between monopolistic competition and complete monopoly, which refers to the market structure in which a few enterprises control the production and sales of the entire market, and these few enterprises are called oligarchs.

Enterprise. Extended Materials.

Monopolistic competition has a relatively large degree of market competition, a small degree of monopoly, and is relatively close to perfect competition. It is common in the retail, handicraft, and printing industries in real cities. In general, this market has the following characteristics:

1.There are many manufacturers.

There are many manufacturers in the market, and each manufacturer must accept the market to a certain extent, but each manufacturer can exert a certain degree of influence on the market and not fully accept the market. In addition, manufacturers cannot collude with each other to control the market. For consumers, the situation is similar.

In this way, the economic man in the monopolistic competitive market is the influencer of the market.

2.Interdependence.

Each economic person in the market thinks that he can act independently of each other and is not dependent on each other. One person's decisions have little impact on others, are not easily detected, and can ignore the counteractions of others.

3.Product differences.

The products of different manufacturers in the same industry are different from each other, either in terms of quality, function, non-substantial difference (such as the difference in packaging, trademark, advertising, etc.), or the difference in sales conditions (such as geographical location).

The difference in service attitude and method causes consumers to be willing to buy this product, but not to buy that company's product). Product differences are the root cause of manufacturers' monopoly, but because the differences between products in the same industry are not so big that products cannot be substituted for each other at all, a certain degree of mutual substitutability allows manufacturers to compete with each other, so mutual substitution is the root cause of manufacturer competition. If you want to say exactly what the difference in the product means, it can be said like this:

Under the same **, if the buyer shows a special preference for a manufacturer's products, it is said that the manufacturer's products are different from the products of other manufacturers in the same industry.

4.Easy to get in and out.

It is easier for manufacturers to enter and exit an industry. This is similar to perfect competition, the scale of the manufacturer is not very large, the capital required is not too much, and the barriers to entering and exiting an industry are not large, and it is relatively easy.

5.Product groups can be formed.

A plurality of product groups can be formed within the industry, that is, factories and liquids that produce similar goods in the industry can form groups, and the degree of product difference between these groups is large, and the degree of difference between products within the group is small.

Monopolistic competition is when there are many manufacturers selling similar, but not identical, products on the market

Monopolistic competition is one of the forms of the main market, and the concept in economics is: the market structure that is infinitely close to perfect competition, which is the most common form of existence in real life.

ExclusivityMonopolistic competition, or monopolistic competition, is one of the forms of imperfect competition.

First by American economists.

Edward Champlin, in his 1933 book The Theory of Monopolistic Competition.

In a monopolistic competitive market, there are many manufacturers, similar to a perfectly competitive market.

No single manufacturer can monopolize the market.

However, what distinguishes it from a perfectly competitive market is that in this form many manufacturers make products that are somewhat differentiated from others (i.e., although the products of these companies are substituted for each other, there are still differences in the brand and quality).

In the short term, a manufacturer that is in exclusive competition is like an exclusive company, and can use part of the monopoly market power (Hunger Digging Monopolistic Market Power) to increase the selling price in order to obtain relatively high profits.

However, in the long run, due to the continuous entry of competitors, the differentiation advantage of rotten nuclear products is gradually reduced due to competition, and the market gradually becomes similar to perfect competition, and manufacturers can no longer obtain too much economic benefit.

But until then, companies that compete exclusively have usually reserved some of their capacity. Industries often cited in textbooks include restaurants, processed cereals, clothing, footwear, and metropolises.

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Product differentiation.

Monopolistic competitors sell products using authenticity or differentiation of sensibility. Product differentiation refers to the impression of the product in the minds of consumers, in addition to the characteristics of the product, it also includes all the services and conditions attached to the sale of the product, such as pre-sales and after-sales services.

The best description of this product feature is that there are other products on the market that are similar but not completely replaceable, and that have the same basic functionality. For example, cars, the basic functions of various cars are the same, and it should be easy to change cars from different brands. But there are many different brands of cars, motorcycles, trucks, recreational vehicles, etc., at different prices.

Explanation of monopoly market terms: refers to the market organization of only one or a few manufacturers in the entire industry.

A complete monopoly market refers to a market structure in which there is only one supplier and many demanders in the market. First, there is only one manufacturer in the market that produces and sells goods; Second, the manufacturer does not produce any close substitutes for the goods; Third, it is extremely difficult or impossible for other players to enter the industry, so monopolies can control and manipulate the market**.

There are many reasons for the formation of monopoly markets, and one of the most fundamental reasons is to establish and maintain a legal or economic barrier. This prevents other enterprises from entering the market in order to consolidate the monopoly position of the monopoly. As the only supplier of the market, it is easy for a monopoly enterprise to control the quantity of a certain product in the market and its market, so that it can continuously obtain monopoly profits.

In the process of socialized development of production, free competition naturally leads to the concentration of production and capital, and when the concentration of production and capital develops to a certain stage, monopoly will inevitably arise. This problem can be analysed from two aspects: on the one hand, the possibility of monopoly arises when the concentration of production and capital develops to a certain stage.

Because when production and capital develop to a certain stage, production and capital are gradually concentrated in the hands of a small number of large enterprises, and it is easy for them to reach an agreement and form a monopoly, making it possible for them to manipulate and control market supply, while other enterprises cannot compete with them; After the concentration of production and capital has reached a certain stage, production and capital will inevitably be concentrated in the hands of a small number of large enterprises.

Features:

1. The number of manufacturers is unique, and one manufacturer controls the entire supply of a certain product. A complete monopoly in the market excludes other competitors and controls the supply of an unobstructed macro industry on its own. Since there is only one supplier in the entire industry, the enterprise is the industry.

2. A complete monopoly enterprise is the formulator of the market. Since the monopoly controls the supply of the entire industry, it also controls the entire industry and becomes the first formulator. A complete monopoly can have two business decisions:

Produce less at a higher level, or produce more at a lower level.

3. There is no similar substitute for the products of a complete monopoly. Otherwise, other enterprises can produce substitutes to replace the products of the monopoly, and the complete monopoly cannot be the sole supplier in the market. As a result, consumers have no other choice.

4. It is extremely difficult or impossible for any other manufacturer to enter the industry, and it is difficult for factor resources to flow. There are barriers to entry in a completely monopolistic market, and it is difficult for other manufacturers to participate in production.

Definition of monopolistic competition: refers to the fact that there are many manufacturers selling similar but not identical products in the market.

Definition of monopolistic competitive market: refers to a market organization in which many manufacturers produce and sell the same product with different differences.

Enterprise monopolistic competition refers to the market phenomenon in which many manufacturers produce several beams and have similar but undesirable goods.

Characteristics of monopolistic competition:

1. Monopolistic competition is a common feature in the old economy, and this feature is more obvious in the era of the new economy (also known as knowledge economy).

2. Monopolistic competition is one of the more typical forms of market Zen in economics.

3. Enterprises that engage in monopolistic competition have zero or low profits in the short term, and are profiteering in the long term.

4. Although monopolistic competition has always been a topic of market and competition in microeconomics, it has been increasingly used by macroeconomists, especially after the 1970s.