Monopolistically competitive firms MUST advertise heavily and differentiate their products in order to gain/maintain market share. While the firms are relatively few in number they are highly competitive and have to offer a quality product at a competitive price.
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| Source: Chart Porn |
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Is there more than 10 corporations that are running the show in america?
ReplyDeleteJason. Yes, a FEW more! :) If you notice, the corporations in this graphic represent consumable products. There are certainly many other sectors in our economy (Autos, Beer, Computers, Technology, etc). I think this is the concern: While there are many diverse sectors of the economy, each sector is increasingly becoming dominated by fewer firms. This can be considered good AND bad. If you look at each of the companies and the products they produce they are ALL products that are of high quality and reasonable prices (for the most part). While there is competition they have to be mindful of price and quality. Depending on the product, bigger companies can maybe serve the market better. What do you think????
ReplyDeleteI think that there is not one proper side to this, you do not want too few corporations running the show, but at the same time it would not be too great to have thousands running independently of each other. I am sure there is a magic grey area involved here.
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