Demand Curve Concepts In Monopolistic Competition - 550 Words

Demand Curve Concepts In Monopolistic Competition (Essay Sample) Content: Economic ConceptsAuthorAuthor AffiliationEconomic concepts1. Demand curve concepts in monopolistic competitionThe first concept learned is the demand curve concept in monopolistic competition (Hellegers et al., 2013).. The monopolistic market is where the manufacturers control the market price for the goods and services at will since there are no substitutes available. In developing this concept, chamberlain considers two demand curves which are the proportional curve and the sales curve. I learned that firms in the monopolistic competition do not care about their competitors since they lack a perfect substitute. This concept helps promote the understanding of why monopolies continue tothrive while exploiting the consumers.2. Concept of marginal productThis concept explains the change in the total product due to the change in the use of an input. I learned that each input plays a key role in influencing the price of the final product. This concept helped me unde rstand why some products have high prices in the market attributed to its raw material which is expensive.3. Concept of growth in the economiesEconomic growth is different from the economic development. I learned that economic growth is a condition for economic development in the country. Further, I learned that the measure of per capita income does not measure the welfare of citizens in a country. This helped me change my long-held view that economic growth in the country led to increasing in the value of life for all the citizens.4. Concept of time in economicsIn economics, there is a clear difference between the short run and long run which is based on the speed of decision making and varying factors of production (Jensen et al2015).This helped me understand that the short run is the period which some factors of production can be varied and not others while the long run is the period of time when all factors of production can be varied. This concept made me appreciate the importance of time in the production process.5. Concept of equilibriumThis concept of economy explains the importance forces of demand and supply in determining the equilibrium price in the market (Islahi 2015.This made me understand the market forces and causes of deviations in the market price from time to time. This helped me change my expenditure trends according to the prevailing and future expected market trends.6. Supply and demandThe concept of the supply and demand helps us to under why at times the prices of goods and services are sold at high prices. For instance, during Christmas celebrations, the prices of goods tend to increase than the normal days. Thus, this concept as applied in the economic it reflects on demand of goods7. Costs and benefitsThis concept involves the pros and cons that are involved; this concept is widely applied in our daily lives. Take for example you are advised to go to school and work hard but you refuse. The negative consequences will out w eight the benefits8. Opportunity costsThis concept revolves around the kind of choices we make. Especially if given two chances to make choice. Moreover, the opportunity cost is all about taking the best alternative while sacrificing others. In our daily life if for example, you decide to get married that means you have abandoned your bachelorhood9. The diamond-water paradoxThis concept paradox of value indicates that water is value to humans than anything, you cann...