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x)' Watch Courage Tr ApleStude to- califoma un ver t X' Mbbor (185), rye California Uni en of 11.13 . 5: Watch at/servlet/quiz?ctx= soos 1 .0006&quiz-actions; tak -How To Return Hor Clarence Season 2 Ep The Spooky Case of tTVGoChannels-XF ws Analysis-Vista: A Tale of Two Market Structures ded Assignment QNAPCOA801010000003bcdafd0090000&ckm; 1513283749093 0AAA6 Due Thursday 12.14.17 at 11:45 P Attempts: Average: S 6. Product differentiation in competitive markets The assumption of the perfectly competitive model is that products sold by all retailers are completely identical. Under this assumption, as we've seen in this analysis, competition between retailers is extremely fierce In practice, retailers try to gain some degree of market power by differentiating themselves from one another. This might make the demand curve facing each retailer slightly less like a perfectly competitive firm and more like that of a monopoly-a market structure sometimes called "monopolistic competition. Which of the following are examples of strategies that a retailer might use to make consumers value its products more than that of its competitors? Bundle Vista with other items, like peripherals or MP3 players Offer free technical support for 30 days after a purchase Offer a store reward card in which in-store purchases count toward future rewards Serve free cappuccinos in the store Try to offer Vista at the lowest possible price Save & C arch 9Explanation / Answer
If a firm under perfect competition can make its product differentiable than others then it can set its own price as well. This will no longer make it a percetly competitive firm rather it would be monopolitically competitive firm where demand is slightly slant.
Al the strategies that could be used in monopolsitic competition, to make product differentiable, should be used by computer operators. These are:
All the given strategies are feasible except the last one of "providing at lowest cost". Because all strategies are making the product differentiable to whichretailer can have chance to earn super natural profit bu charging higher price. But it can not charge lowest price because the retailers are already provdiing at lowest pricein perfect competition.
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