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Economic Comment Essay

A Perfect Competition happens when companies from different places virtually sell the same product and can be interchangeable. For instance, the soda industry is composed of numerous companies, like Pepsi, Coca Cola, Faygo, Dr. Pepper, etc, which basically sells similar products in closely-related prices. Likewise, the art supply industry features same items at basically similar prices at different stores, even when they are on sale.

On the other hand, in a Monopolistic Competition, companies have the same operating procedure, and they manufacture similar products but are not perfectly substitutable. For example, in the clothing industry, one can purchase a pair of jeans at different prices; if a pair of jeans is too expensive, one can always choose another brand for a lower price. Also, people have an option of Microsoft products over Apple’s products because the former offers cheaper items up front.

In Oligopoly, a specific market is managed by a small group of companies and the product affects the market significantly. The Big Three in the Auto Industry; Ford, GM, and Chrysler, used to control the market with their marketing strategies and prices, until other car companies, such as Toyota and Honda, sneaked into the scene. These mix significantly changed the

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sales of the original three companies, which in turn affected the market. In Monopoly, there is only one or very minimal firm selling a certain product or service, and it has no close substitutes.

In NYC, people can only get satellite service from 2 or 3 providers, so even if the prices are really, they are left with no choice. On a personal note, when my family visits Michigan, towns get smaller and stores get fewer with distance. On the town we visited, the only grocery store available where the community and tourists can shop is Wal-Mart. Wal-Mart had created its own monopoly for an entire area of Northern Michigan. Changing the world’s monetary system form the circulating coins and paper bills to gold is a rather ambiguous move.

Basically, the gold standard was a commitment by participating countries to fix the prices of their domestic currencies in terms of a specified amount of gold. The first major problem with this standard is that gold is a limited or non-renewable resource. How can a growing economy be supported by a finite value of gold? Eventually, there will not be enough gold available to support the expansion of an economy, which would cause deflation. In addition, the gold standard will just be beneficial for countries which have a large supply, but very deconstructive for other countries lacking resources. ¬¬¬

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