Question

1.) How do producers use market research to help maximize profits?

2.) Give two examples of companies that are characterized by a monopolstic competition market structure.

All kinds of market research are being done these days. Research on consumer preferences, price elasticities, cross-price elasticities, purchasing habits, determination of complimentary and supplementary goods, etc.

Any company that produces a good that 1) has some brand loyality, and b)is very similar to some other good. E.g., Levi jeans, Coca Cola, Hearshy Chocolates, etc.

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