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DateDate: April 24, 2013: April 24, 2013
TopicTopic: Monopolistic: MonopolisticCompetitionCompetition
AimAim: How does monopolistic : How does monopolistic competition exist?competition exist?
Do NowDo Now: Multiple Choice : Multiple Choice Questions. Questions.
Beginning in the mid-1970’s Pepsi Cola launched a marketing campaign called the Pepsi Challenge. The challenge took the form of a taste test.
TODAY WE WILL TAKE THE PEPSI CHALLENGE!!TODAY WE WILL TAKE THE PEPSI CHALLENGE!!
Monopolistic Competition
Many companies compete in an open market to sell products that are similar but not identical.
Each firm holds a monopoly over its own particular product.
Four Conditions of Monopolistic Competition
Many firms.
Few artificial barriers to entry.
Slight control over price.
Differentiated Products.
Monopolistic Competition
Non-price CompetitionMonopolistic competition also takes the form of
non-price competition.Competition through ways other than lowering
prices.
I WILL FIGHT YOU IN WAYS OTHER THAN CHANGING MY PRICES!
NONPRICE COMPETITIONSTATION #1
PHYSICAL CHARACTERISTICS
THESE SNEAKERS LOOK BETTER AND ARE MUCH MORE COMFORTABLE, KIM!
NONPRICE COMPETITIONSTATION #2
LOCATION
FINALLY WATER! BUT WAIT A SECOND! THAT WATER MAY COST ME MY SPOTS!
WE’RE HITTIN THE OCEAN PALACE FOR OUR SONS COLLEGE GRADUATION DINNER!
NONPRICE COMPETITIONSTATION #3
SERVICE LEVEL
I CAN JUST SIT IN MY CAR AND THEY BRING ME FOOD!
THE SERVICE USED TO BE SO MUCH BETTER HERE!
NONPRICE COMPETITIONSTATION #4
ADVERTISING, IMAGE, AND STATUS
HEY, WHAT GREEN SHIRT DO YOU WANT TO BUY?
YO! THAT HILFIGER SHIRT IS MAD NICE. IT SAYS HILFIGER ON IT.
OligopolyMarket dominated
by a few large profitable firms.
Ex: airlines and gas companies.
Summary activity – Answer the Aim.
How does monopolistic How does monopolistic competition exist?competition exist?
YES, THIS WILL BE COLLECTED.