Observations on Product Characteristics
Most of the products observed have significant differences in price while those that face stiff competition have slight variations in price. From the logos, colors, design, and packaging the products are entirely different, and one can quickly identify a product based on the color or design of the package. The characteristics are chosen in a unique way such that each product look different to the consumer. However, what was also noted is the copying of each other for products that are automatically substituted. Moreover, the products were arranged in adjacent shelves or in shelves that are opposite each other. The products that compete closely with each other are in the food industry. This activity has enabled me to understand that the products are at the primary level homogeneous. However, the providers have come up with new methods of making the consumers believe they are entirely different products (Mankiw, 2017). Also, firms in a monopolist market specialize in mind game through designing, coloring, and packaging.
References
Economics fun. (2012, January 15). Introduction to Perfect Competition [Video file]. Retrieved from https://www.youtube.com/watch?time_continue=1"v=5c_dBgYMzCQ
Flash Economics. (2012, January 11). Monopolistic competition [Video file]. Retrieved from https://www.youtube.com/watch?time_continue=9"v=9VRxhN7ajcY
Gnandi C. (2009, November 29). Teach Me: Monopolistic Competition [Video file]. Retrieved from https://www.youtube.com/watch?v=JxS9rtrsCC4
Mankiw, N. Gregory. Principles of macroeconomics. 8th ed. Cengage Learning, 2017.
McGlasson, M. J. (2009, August 1). Episode 26B: Maximizing Profits [Video file]. Retrieved from https://www.youtube.com/watch?time_continue=2"v=J_tdZZkRvbg
