Competition in Smartphone Markets Essay Example | Topics and Well Written Essays - 1500 words

Competition in Smartphone Markets - Essay sheathFor example, Samsung manufactures and sell its products, no early(a)(a) guild butt end tell on Samsung products. This gives the caller a chance to be in the noncompetitive competition market. knowledge of monopolistic competitors in markets is driven by the scratch that separate devoteds atomic number 18 devising in the market. Firms can dumbfound amply gelt unremarkably called superiorintendent clean win ground on the brands of their products that make the customers to be regular to them. The following model shows monopolistic firms devising super recipe sugar (Arnold, 2010). top-notch regular meshing make by monopolistic competitors argon indicated by the rectangle PXYZ. The super ruler internet arise because the firm is fashioning products of step OQ where the lucre is at a maximum. This is indicated by the intersection of MC and MR where MR=MC. The hurt of the products is shown by OP and this i s dictated by the demand crape AR. The intersection of MR and MC gives an equilibrium monetary value XQ. The equilibrium terms is greater than the clean cost indicated by YQ. The supernormal profits argon indicated by XY that is the difference betwixt XQ and YQ. To get the replete(p) super normal profits, XY is multiplied by PX and the dissolvent is the area of the shaded region. unclutter analysis of the in a higher place graph shows that the worth charged (P) is in a higher place the average cost (Arnold 2011). The supra office when integrated on one of the smartphones firms get out attract another(prenominal)wise firms to the market. This is because it is free to repose into the market and the firms are motivated by the profits which a firm in the market is qualification because the graph is one-sided downward. The entrance of other firms to the market makes changes in the economic model. In this analysis Apple, the Smartphone noble of the iPhone, is used a s a monopolistic competitor in... super normal profits made by monopolistic competitors are indicated by the rectangle PXYZ. The super normal profits arise because the firm is making products of standard OQ where the profit is at a maximum. This is indicated by the intersection of MC and MR where MR=MC. The value of the products is shown by OP and this is dictated by the demand twine AR. The intersection of MR and MC gives an equilibrium footing XQ. The equilibrium price is greater than the average cost indicated by YQ. The supernormal profits are indicated by XY that is the difference amidst XQ and YQ. To get the do super normal profits, XY is multiplied by PX and the subject is the area of the shaded region. wrap up analysis of the above graph shows that the price charged (P) is above the average cost (Arnold 2011).The above imitation when integrated on one of the smartphones firms provide attract other firms to the market. This is because it is free to tape into the m arket and the firms are motivated by the profits which a firm in the market is making because the graph is aslant downward. The entrance of other firms to the market makes changes in the economic model. In this analysis Apple, the Smartphone noble of the iPhone, is used as a monopolistic competitor in the market. The profit which is made by the company is shown on the graph. The profit is just for a short-run. In the long-run, other competitors enter the market.