资源描述：
《Krugman_SolMan_CH16》由会员上传分享，免费在线阅读，更多相关内容在学术论文-天天文库。
1、Krugman_SolMan_CH1611/11/044:48PMPage131MonopolisticCompetitionandProductDifferentiation161.Thethreeconditionsformonopolisticcompetitionare(1)alargenumberofproducers,(2)differentiatedproducts,and(3)freeentryandexit.a.Therearemanybandsthatplayatweddings,parties,andsoon.Therearenosig-n
2、ificantbarrierstoentryorexit.Andproductsaredifferentiatedbyquality(forinstance,somebandshavebettermusiciansorbetterelectronicequipment)orbystyle(forinstance,differentbandsplaydifferenttypesofmusic).Allthreecondi-tionsformonopolisticcompetitionarefulfilled.b.Theindustryforindividual-s
3、ervingjuiceboxesisdominatedbyafewverylargefirms(forexample,MinuteMaid,Welch’s,andKoolAid),andtherearesignifi-cantbarrierstoentry,inpartbecauseofthelargecosts(forexample,advertising)involvedingaininganymarketshareofthenationalmarket.Productsare,how-ever,differentiated—ifperhapsonlyint
4、hemindsofconsumers.Becauseofthesmallnumberofcompetitors,theindustryisclosertooligopoly.c.Thereisalargenumberofdrycleaners,andeachproducesaproductdifferentiat-edbylocation:customersarelikelytoprefertousethedrycleanerclosesttotheirchapterhomeorworkplace.Finally,therearenosignificantbar
5、rierstoentry.Thisisamonopolisticallycompetitivemarket.d.Thereisalargenumberofsoybeanfarmers,andthereisfreeentryandexitinthisindustry.However,soybeansarenotdifferentiatedfromeachother—theyareastandardizedproduct.Noindividualsoybeanfarmerhasmarketpower.Thisindustryisthereforeaperfectly
6、competitiveindustry.2.Therearethreewaysinwhichyoucandifferentiateyourproduct:bystyleortype;bylocation;andbyquality.IfyoudecidetocopyStarbucksbothinstyle(forexample,youcopythedécoroftheshopandtheservice)andinquality(forexample,youservecoffeemadefromthesamecoffeebeans,brewedinexactlyth
7、esameway),youwillstillmostlikelydif-ferentiateyourproductbylocation:yourcoffeeshopwillbecloserforsomepeoplethananyoftheothershops,andthatgivesyousomedegreeofmarketpower.Butyoucouldfurtherdifferentiateyourproductbystyle(forexample,youcouldservecoffeeinporcelaincupsbroughttothetablebyw
8、aiters)orbyq
