Market Models Assignment Example | Topics and Well Written Essays - 250 words

Market Models - subsidisation ExampleAlthough there be numerous dissipateds in the semiconductor chip making business line, their products are differentiated by some upstanding-specific variables that create substitutability in the market. On the same note, each firm adopts its own pricing policies, thereby practicing independence from the others. However, Intel Corporation and all other firms in this market warning cannot compete on price basis. Rather, intensive advertising is a prominently employed competition system (Taylor & Weerapana, 2009).Market share in monopolistic competition is accessed by all operating firms. The substitutability of products makes firm to become price cautious, although they cannot necessarily compete on price basis. Firms can also enter and pull the market relatively easy, making new entrants pose operational threats to existing firms in terms of competition. scientific improvements make it possible for Intel to come up with new and improved pro duct brands, but this does not reign over out the fact that rival firms could be doing the same and that new entrants could do it even better in the monopolistic competition market