Is P read off the D curve? The monopolistic competitors maximize profit by producing to where MR=MC. Yes, price is always read off the demand curve. List the formula to figure actual dollar profit (or loss) from the monopolistic competitor’s graph.

a contract in which the incentives of each of the two parties to the contract are made to correspond as loosely as possible. Term. Lazy monopolist. Definition. a monopolist that does not push for efficiency, but merely enjoys the position it is already in.

oligopoly

• few large firms.
• homogeneous or differentiated.
• control over price but mutual interdependence.
• entry barriers.

What is the most likely response by rivals when an oligopolist cuts its price to increase its sales? Cut their prices. Small enough so that one firm’s decisions have a significant impact on the decisions of the other firms in the industry.

In a differentiated oligopoly, similar but not identical products are produced. Examples include the automobile industry, the cigarette industry, and the soft drink industry. In differentiated oligopolies companies attempt to differentiate their products from those of their competitors.

An oligopoly is a market structure in which a few firms dominate. It is when a market is shared between few firms selling a homogeneous or a differentiated product. Was this answer helpful?

One example of an oligopolistic market that exists today is the fast food industry. Fast food restaurants such as Burger King, McDonalds, and Wendy’s all sell a similar product and use product differentiation to attract business to their chains. Yet another example of an oligopoly is the beer industry in America.

Monopolistic Competition Market Structure

McDonalds is the only provider of Big Macs, yet it is not a monopoly because there are many close substitutes available: Burger King Whoppers, for example. Market power is also called monopoly power. A competitive firm is a “price taker,” so has no ability to change the price of a good.

KFC was the most calorific the fast-food chain on the list, with an average of 987 calories per meal offered. Burger King, McDonald’s and Subway were around 700kcal.

McDonald’s is the world’s largest fast-food restaurant chain and one of the best-known brand names.

No, McDonald’s does not own Panera Bread. Panera was purchased by JAB Holding Company in July 2017 for $7.5 billion. Panera is no longer traded in the market since it was acquired by a private business.