Although the long-term equilibrium of monopoly competition is zero profit equilibrium like perfect competition, the demand curve of monopoly competitors is inclined to the lower right, tangent to the average cost curve, not at its lowest point. Therefore, the equilibrium price is also higher than that in a perfectly competitive market.
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1. What are the ways for monopoly competitors to maximize profits?
Under the concept of good faith, there is no shortcut to maximize profits in monopolistic competition, but there must be the following ways:
1. Product differences As the saying goes, everyone has his own advantages. This is very correct. Compare the quality of the same style with the price of the same quality. Only high-quality products have the prospect of sustainable development, and only innovative products have the advantage of being one step ahead. 2. Brand building A good product must have a good name, and a resounding name can be deeply remembered by people. Come up with a good product with confidence, but because most people can't find the source of the product, they can't know who the product belongs to and can't spread the good reputation of the product. Isn't this the biggest mistake in marketing? Therefore, we must register a trademark to establish brand awareness, loyalty and reputation. 3. Legal property rights have worked hard to design a new and good product, which is very popular in the market. But because there is no application, there is no shortcut to monopoly competition and profit maximization in the concept of honesty, but there must be the following ways:
1. Product differences As the saying goes, everyone has his own advantages. This is very correct. Compare the quality of the same style with the price of the same quality. Only high-quality products have the prospect of sustainable development, and only innovative products have the advantage of being one step ahead.
2. Brand building A good product must have a good name, and a resounding name can be deeply remembered by people. Come up with a good product with confidence, but because most people can't find the source of the product, they can't know who the product belongs to and can't spread the good reputation of the product. Isn't this the biggest mistake in marketing? Therefore, we must register a trademark to establish brand awareness, loyalty and reputation.
3. Legal property right has finally designed a new good product, which is very popular in the market. But because there was no patent application, it was counterfeited overnight, and there were fakes everywhere. Tears flow into your stomach, and no one will believe that the product comes from your hand.
Therefore, we must protect your intellectual property rights. The only case I know of squinting is the Shanghai Soko computer desk. Suoke Company has designed various novel and unique computer desks, which are very popular in Taobao. Many manufacturers have followed suit. Who knows, Soko has already applied for a patent and brought all counterfeit manufacturers to court one by one, effectively protecting the rights and interests of Soko with legal weapons. Last summer, Soko monopolized the laptop desk market in Taobao, which was very popular. Because of poor production, the products were sold out for a while. Patents, counterfeit overnight, are full of fakes, tears flow into your stomach, and no one will believe that the products come from your hands.