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  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 5 Firm Behavior and the Organization of Industry Chapter 16 of 36 - Monopolistic Competition Section 13 of 13 … Table 1 lists similarities and differences among perfect competition, monopolistic competition, and monopoly … Monopolistic competition is a hybrid of monopoly and competition. Like a monopoly, each monopolistic competitor · faces a downward-sloping demand curve · charges a price above marginal cost Like perfect competition, with monopolistic competition · there are many firms · entry and exit drive the profit of each monopolistic competitor toward zero … Monopolistically competitive firms produce differentiated products so firms advertise to attract customers to its own brand. Advertising of monopolistically competitive firms · to some extent manipulates consumers' tastes, promotes irrational brand loyalty, and impedes competition · to a larger extent provides information, establishes brand n...
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  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 5 Firm Behavior and the Organization of Industry Chapter 16 of 36 - Monopolistic Competition Section 12 of 13 … In many markets there are two types of firms · firms that sell products with widely recognized brand names · firms that sell generic substitutes In a grocery store, you find Pepsi next to unfamiliar colas. Mostly, the firm with the brand name spends more on advertising and charges a higher price for its product. … There is disagreement about the economics of brand names. Critics argue brand names cause consumers to perceive non-existent product differences. Often the generic good is indistinguishable from the brand-name good. They argue consumers' willingness to pay more for the brand-name good is an irrationality caused by advertising. Economist Edward Chamberlin in 1933 concluded brand names were bad for the economy. He proposed government discourage use of brand names by refusing to enforce...
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  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 5 Firm Behavior and the Organization of Industry Chapter 16 of 36 - Monopolistic Competition Section 11 of 13 … How does advertising affect the price of a good? One view is advertising makes consumers view products as being more different than they would view them without advertising. Markets become less competitive, firms' demand curves become less elastic, more vertical. By creating a less elastic demand curve (less sensitivity to price) firms can charge a higher price. Another view is advertising makes it easier for consumers to find the firms offering the best prices and markets become more competitive. Firms' demand curves are made more elastic and firms charge lower prices. … Economist Lee Benham tested these two views of advertising in 1972. In the United States during the 1960s the various states had different laws about advertising by optometrists. Some states allowed advertising for eyegla...
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  Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 5 Firm Behavior and the Organization of Industry Chapter 16 of 36 - Monopolistic Competition Section 10 of 13 … Every day we are surrounded by advertising, firms trying to convince us to buy their products. This is natural for monopolistic competition as well as some oligopolistic industries. When firms sell differentiated products and charge prices above marginal cost each firm has an incentive to advertise to attract more buyers to its product. Firms that sell highly differentiated consumer goods such as medical drugs, perfumes, soft drinks, razor blades, breakfast cereals typically spend between 10 and 20 percent of revenue for advertising. Firms that sell industrial products such as drill presses and communications satellites typically spend very little on advertising. Firms that sell homogeneous products, such as wheat, peanuts, or crude oil, rarely spend any amount. Overall, about two percent of t...
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Scot and Fumiko pictures and information

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  Fumiko Scot's information: Weight at 163 pounds, got to 160 pounds five years ago and have recently been bouncing between 163 and 170. Common sense ways to lose and keep off weight are eat right and light and get lots of exercise. Main exercise is walking, do 1~2 miles most days. Over career worked as a salesman in the steelmaking, fasteners, and auto manufacturing industries, lots of travel in U.S., Canada, Mexico, and Japan. Have visited every U.S. city with a major league, MLB, NFL, NBA, NHL, sports team except Sacramento, have gotten as close as Travis Air Force Base. Often traveled on Sundays, much time on the road so could not eat right and get enough exercise so got heavy, up to 200 lbs. Was on commission and made enough to retire early, now eat right and light, get enough exercise. Now am spending most time reading and writing. Our Wick branch goes back to the brother of owner of the Wick House at Morristown National Historical Park in Morristown New Jersey, and on back t...
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HAT Manifesto Part 1/3 - Rubric Cube - 250406 edit

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  1. The world we see that seems so insane is the result of a belief system that is not working. To perceive the world differently, we must be willing to change our belief system, let the past slip away, expand our sense of now, and dissolve the fear in our minds. - William James 2. All experience has shown mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. - Thomas Jefferson 3. Wherever good fortune enters envy lays siege and attacks it. And when it departs, sorrow and repentance remain behind. - Leonardo da Vinci 4. Struggle is the indispensable accompaniment of progress. If men were entirely social, man would stagnate. A certain alloy of individualism and competition is required to make the human species survive and grow. Without qualities of an unsocial kind men might have led an Arcadian shepherd life in complete harmony, contentment, and mutual love. But in that case all their t...
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