Question

If you were shopping for a new TV, would you prefer to buy one (a) under perfectly competitive market conditions, (b) from a regulated monopoly, (c) from an oligopoly or (d) under monopolistic competition market conditions? Explain your reasoning. What market structure would result in the lowest price? If you choose a market structure that doesn't offer the best price, why did you choose it? In your answer, also be sure to explain the characteristics of each of these four market structures. Do this to explain the market structure you chose, and the three you did not.

Answer 1

Answer:

One is buying a brand new T.V. then one can purchase the T.V. beneath the monopolistic market situation. this can be as a result of T.Vs are oversubscribed as differentiated product by diverse brands with diverse options in several brands of T.V. conjointly promotion and marketing also shows a vital part in T.V. market. though utterly viable variety of markets lead to lowest worth, however the market construction of noncompetitive kind are going to be chosen during this case as request for T'V is comparatively elastic and not utterly flexible as is that the circumstance in perfectly competitive markets and other people conform to pay higher costs for a lot of options and conditions.

It is not wise to shop for T.V. beneath monopoly because the worth are going to be terribly high and shopper additional will be low. Also, in oligopoly market arrangement the costs are going to be high and solely few companies will be marketing the merchandise with not a lot of selections accessible within the market.

Thus, the most effective sort of market arrangement to shop for T.V.is monopolistic competition.