I will like to utilize cable companies as Monopolistic Competition identifying and describing the conditions you observed.provide brief market analysis including the state of the market before and after the differentiation, as well as the observed changes that resulted. Specifically, the following questions should be addressed:
•What type of market structure was the product or service in when the differentiation occurred?
•What is the differentiation? Describe specifically what the differentiation was and tell us what that means for rational business price and production decisions.
•What was the observed change in the equilibrium price and quantity in the market, as well as the company?
•Evaluate the result of the observed change from perspectives of efficiency and equity drawing upon price/cost margins for your explanation.
•Evaluate whether the decision to differentiate the product was a good move for that business at that time.
Evaluate whether the decision to differentiate the product was a good economic decision for that business at that time. That is, were economic or normal profits realized as a result?
I will like to utilize cable companies as Monopolistic Competition
Market before and after product differentiation
Describe the differentiation. How does it affect business price and product decisions.
Changes occurring in price and quantity in the market and the company.
Describe efficiency and equity by showing relationship between price and marginal cost for monopolistic competition
Was differentiation a good move for the company?