Explore BrainMass
Share

Explore BrainMass

    Evolution of Market Structures

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The 4 types of market structures are Perfect Competition, Monopoly, Oligopoly, and Monoplistic Competition. Given the dynamics of competition, think of the various sequential paths of market structures that firms can move through over time (any of the following is possible):

    Monoply-->Oligopoly-->Monopolistic Competition-->Perfect Competition
    Monoply-->Oligopoly-->Monopolistic Competition-->back to Oligopoly
    Perfect Competition-->Monopolistic Competition-->Oligopoly-->Monopoly

    Which path is the most consistent with the traditional Product Life Cycle (introduction, growth, maturity, decline)? How do you see pricing strategies and profits evolve along these possible paths?

    I think the answer to this would be monopoly>oligopoly>monopolist competition>back to oligopoly.

    Monopoly = skimming or segmentation
    Oligopoly= high profits
    monopolistic competition = reduced prices, still profits until MR = MC
    oligopoly = ???

    © BrainMass Inc. brainmass.com October 9, 2019, 4:59 pm ad1c9bdddf
    https://brainmass.com/economics/oligopoly/evolution-of-market-structures-45124

    Solution Preview

    Yes, the best answer is Monoply-->Oligopoly-->Monopolistic Competition-->back to Oligopoly
    Monopoly = skimming or segmentation
    Oligopoly= high profits
    monopolistic competition = reduced prices, still profits until MR = MC
    oligopoly = ???

    The life cycle framework of industry ...

    Solution Summary

    The life cycle framework of industry evolution is discussed.

    $2.19