Monopolistic competition is a type of imperfect competition such that many producers sell products that are differentiated from one another and hence are not perfect substitutes. In monopolistic competition, a firm takes the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms. In the presence of coercive government, monopolistic competition will fall into government-granted monopoly. Unlike perfect competition, the firm maintains spare capacity. Models of monopolistic competition are used to model industries. Textbook examples of industries with market structures similar to monopolistic competition include restaurants, clothing and service industries in large cities; the "founding father" of the theory of monopolistic competition is Edward Hastings Chamberlin, who wrote a pioneering book on the subject, Theory of Monopolistic Competition. Joan Robinson published a book The Economics of Imperfect Competition with a comparable theme of distinguishing perfect from imperfect competition.
Monopolistically competitive markets have the following characteristics: There are many producers and many consumers in the market, no business has total control over the market price. Consumers perceive. There are few barriers to exit. Producers have a degree of control over price; the principal goal of the firm is to maximize its profits. Factor prices and technology are given. A firm is assumed to behave as if it knew its cost curves with certainty; the decision regarding price and output of any firm does not affect the behavior of other firms in a group,i.e. Impact of the decision made by a single firm is spread sufficiently evenly across the entire group. Thus, there is no conscious rivalry among the firms; each firm earns only normal profit in the long run. Each firm spends substantial amount on advertisement; the publicity and advertisement costs are known as selling costs. The long-run characteristics of a monopolistically competitive market are the same as a competitive market. Two differences between the two are that monopolistic competition produces heterogeneous products and that monopolistic competition involves a great deal of non-price competition, based on subtle product differentiation.
A firm making profits in the short run will nonetheless only break in the long run because demand will decrease and average total cost will increase. This means in the long run, a monopolistically competitive firm will make zero economic profit; this illustrates the amount of influence. This means that an individual firm's demand curve is downward sloping, in contrast to perfect competition, which has a elastic demand schedule. There are six characteristics of monopolistic competition: Product differentiation Many firms Freedom of Entry and Exit Independent decision making Some degree of market power Buyers and sellers do not have perfect information MC firms sell products that have real or perceived non-price differences. However, the differences are not so great. Technically, the cross price elasticity of demand between goods in such a market is positive. In fact, the XED would be high. MC goods are best described as imperfect substitutes; the goods perform the same basic functions but have differences in qualities such as type, quality, reputation and location that tend to distinguish them from each other.
For example, the basic function of motor vehicles is the same—to move people and objects from point to point in reasonable comfort and safety. Yet there are many different types of motor vehicles such as motor scooters, motor cycles and cars, many variations within these categories. There are many firms in each MC product group and many firms on the side lines prepared to enter the market. A product group is a "collection of similar products"; the fact that there are "many firms" gives each MC firm the freedom to set prices without engaging in strategic decision making regarding the prices of other firms and each firm's actions have a negligible impact on the market. For example, a firm could cut prices and increase sales without fear that its actions will prompt retaliatory responses from competitors. How many firms will an MC market structure support at market equilibrium? The answer depends on factors such as fixed costs, economies of scale and the degree of product differentiation. For example, the higher the fixed costs, the fewer firms the market will support.
Like perfect competition, under monopolistic competition the firms can enter or exit freely. The firms will enter. With the entry of new firms, the supply would increase which would reduce the price and hence the existing firms will be left only with normal profits. If the existing firms are sustaining losses, some of the marginal firms will exit, it will reduce the supply due to which price would rise and the existing firms will be left only with normal profit. Each MC firm independently sets the terms of exchange for its product; the firm gives no consideration. The theory is that any action will have such a negligible effect on the overall market demand that an MC firm can act without fear of prompting heightened competition. In other words, each firm feels free to set prices as if it were a monopoly rather than an oligopoly. MC firms have some degree of market power. Market power means that the firm has control over the terms and conditi
Philo White Jr. was a politician and newspaperman. White was born in Whitestown, New York, on June 23, 1796, he was one of nine children born to Esther White. His father was the youngest son of Mary White and Hugh White, the pioneer who served during the Revolutionary war as a quartermaster. White obtained his early education at the Whitestown Seminary. In 1820, after spending a few years in a printing office in Utica, White moved to Salisbury, North Carolina. From 1820 to 1830, White published the Western Carolinian. From 1830 to 1834, he was a purchasing agent for the United States Navy. From 1834 to 1836, he published the Raleigh Standard. In 1836, he moved to Milwaukee, in 1844, he moved to Racine, Wisconsin while serving as a Purser in the U. S. Navy, he helped to establish and edited the Milwaukee Sentinel. White owned and published the Racine Advocate for a time and was active in the founding of Racine College. White, a Democrat, was a member of the Wisconsin Territorial Legislature from 1847 to 1848, in 1848 became a member of the first Wisconsin State Senate from the 17th District, serving for a year.
On July 18, 1853, White was appointed U. S. Chargé d'affaires in Ecuador, he presented his credentials on December 27, 1853 and served through his appointment by President Franklin Pierce on June 29, 1854 as U. S. Minister to Ecuador, for which he presented his credentials on September 2, 1854. On February 25, 1856, he was nominated as Envoy Extraordinary and Minister Plenipotentiary to Ecuador but it was withdrawn before the Senate acted on it. White presented his recall on September 14, 1858 and was succeeded by Charles R. Buckalew, appointed by James Buchanan. On May 9, 1822, White was married to Nancy R. Hampton in Rowan County, North Carolina, the daughter of William and Mary Hampton. Together, they were the parents of two daughters: Mary White, who married John Willis Ellis of Salisbury, North Carolina on August 1884. After her death, he remarried and became the 35th Governor of North Carolina. Esther White, who died young. White died on February 1883 in Whitestown, New York. Philo White at Find a Grave
Chiselbury is the site of an Iron Age univallate hillfort located in Wiltshire. The hillfort is sub-circular in plan, encloses an area of 10.5 acres. It is defined by an earthen rampart up to 3.6 metres in height and an external ditch, up to a maximum of 1.6 metres in depth. A gap in the southeastern side of the rampart, a corresponding causeway across the ditch, is thought to be the original entrance and is associated with a small'D' shaped embanked enclosure, visible on aerial photographs. Although the enclosure has subsequently been degraded by ploughing, it is still apparent as a series of low earthworks. Limited archaeological investigation of the interior of the hillfort in the early 20th century failed to find any direct traces of occupation. However, outside of the fort some Iron Age pottery and a lead spindle whorl were found. In addition, two Roman coins, one of which dated to the reign of Emperor Constantine I, were said to have been found within the central area. An Iron Age sword and scabbard were found on the nearby trackway which runs along the ridge top.
The hillfort is abutted on both its southern sides by embanked ditches or cross dykes. Their precise function is unknown but the manner in which they cut the ridge suggests that they were intended to prevent movement along it; the Northern Cross dyke, 90 metres in length, ran from the ditch of the hillfort across the top of the ridge before continuing part way down its northern slopes. Although visible in 1928, the section between the hillfort and the edge of the ridge has subsequently been infilled by ploughing, but survives as a buried feature; the Southern Cross dyke, which survives as a discontinuous series of banks and ditches, is a total of 180 metres in length. It travels south-southeast from the'D' shaped enclosure, down the southern slope of the ridge, into the base of a valley. An aerial photograph from 1928 shows the southern cross dyke continuing as a buried feature beneath a trackway which runs along the ridge top, indicating that the trackway came into use after the cross dyke was constructed.
An Anglo-Saxon charter mentions'the ridgeway' suggesting that the trackway was in use by at least the early medieval period. Referred to as the'Ten Mile Course' by Dr. Stukeley in 1776, in the medieval and post-medieval periods the trackway was the main route from Wilton to Shaftesbury. By the 18th century it had become a turnpike road, a map dated to 1773 depicts a toll house to the south of it; the remains of the former toll house structure are visible today as a series of earthworks representing a building platform with a small enclosure to its east. The site is a scheduled national monument no.1020262. Today, the site is famous for the Fovant Badges, which are a number of regimental badges cut into the chalk of the hill on its northern flank; these were created by soldiers garrisoned near Fovant during the First World War, are visible from the A30 which runs through the village. The site is located at grid reference SU018281, to the southeast of the small village of Fovant, in the county of Wiltshire.
The hill has a summit of 201m AOD. There are public bridleways to the east and south of the site. List of places in Wiltshire List of hill forts in England List of hill forts in Scotland List of hill forts in Wales