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frez [133]
4 years ago
13

Why is it relatively easy for firms to enter and leave a monopolistically competitive market?

History
1 answer:
VashaNatasha [74]4 years ago
7 0

A monopolistically competitive market is, by definition, constituted by a large number of firms that compete producing diferenced versions of a product. Such companies are not price-takers and they hold certain degree of power market and of control over the pricing decisions.

However, in a market that comprises so many actors in its supply side, the market power is splitted in many small units and the amount exercised by each is not very strong. Firms operating in this market structure do not have enough power to affect their rivals through their internal decisions and also not enough power to affect potential competitors and to prevent their entrance. They cannot set entry barriers to prevent the entrance of new companies in the market.

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The Tet offensive of 1968 (Vietnamese: Sự kiện Tết Mậu Thân 1968), also called the general offensive and uprising of Tet Mau Than[15] (Vietnamese: Tổng tiến công và nổi dậy, Tết Mậu Thân 1968) was a major escalation and one of the largest military campaigns of the Vietnam War. It was launched on January 30, 1968 by forces of the Viet Cong (VC) and North Vietnamese People's Army of Vietnam (PAVN) against the forces of the South Vietnamese Army of the Republic of Vietnam (ARVN), the United States Armed Forces and their allies. It was a campaign of surprise attacks against military and civilian command and control centers throughout South Vietnam.[16] The name is the truncated version of the Lunar New Year festival name in Vietnamese, Tết Nguyên Đán.[17]

Explanation:

The offensive was launched prematurely in the late night hours of 30 January in the I and II Corps Tactical Zones of South Vietnam. This early attack allowed allied forces some time to prepare defensive measures. When the main operation began the next morning, the offensive was countrywide and well coordinated; eventually more than 80,000 PAVN/VC troops struck more than 100 towns and cities, including 36 of 44 provincial capitals, five of the six autonomous cities, 72 of 245 district towns, and the southern capital.[18] The offensive was the largest military operation conducted by either side up to that point in the war.

Hanoi had launched the offensive in the belief that it would trigger a popular uprising leading to the collapse of the South Vietnamese government. Although the initial attacks stunned the allies, causing them to lose control of several cities temporarily, they quickly regrouped, beat back the attacks, and inflicted heavy casualties on PAVN/VC forces. The popular uprising anticipated by Hanoi never happened. During the Battle of Huế, intense fighting lasted for a month, resulting in the destruction of the city. During their occupation, the PAVN/VC executed thousands of people in the Massacre at Huế. Around the U.S. combat base at Khe Sanh, fighting continued for two more months.

The offensive was a military defeat for North Vietnam. However this offensive had far reaching consequences due to its effect on the views of the Vietnam War by the American public. General Westmoreland reported that defeating the PAVN/VC would require 200,000 more American soldiers and activation of the reserves, prompting even loyal supporters of the war to see that the current war strategy required re-evaluation.[19] The offensive had a strong effect on the U.S. government and shocked the U.S. public, which had been led to believe by its political and military leaders that the North Vietnamese were being defeated and incapable of launching such an ambitious military operation; American public support for the war declined as a result of the Tet casualties and the ramping up of draft calls.[20] Subsequently, the U.S. sought negotiations to end the war.

The term "Tet offensive" usually refers to the January–February 1968 offensive, but it can also include the so-called "Mini-Tet" offensive that took place in May and the Phase III offensive in August, or the 21 weeks of unusually intense combat which followed the initial attacks in January.[21]

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