Pick one product or product family that exhibits tendencies toward pure competition, three that exhibit tendencies toward monopolistic competition, and one that exhibits tendencies toward monopoly. The business as a whole can be used in place of one product family.
Capital Grille is widely known as an American restaurant that was founded by Edward P(Wollenberg, 2006). The restaurant deals with fast moving products that can exhibit tendencies toward pure competition, monopolistic competition, and toward monopoly. Its brand has locations in almost twenty states and the entire District of Columbia (Plunkett, et al, 2009). The company is widely known due to its providence of professional products and services.
One of the products which is offered in Capital Grille and tends to exhibit tendencies toward pure competition is fresh seafood. This is one of the major products that are offered in this restaurant that tends to exhibit some of the characteristics of perfect competition. One of the reasons that makes fresh seafood product to be categorized in this group is because it is a homogenous product that can be sold in many restaurant. In addition, many buyers prefer to eat fresh seafood and thus, fresh seafood is a product that exhibits some of the products in perfect or pure competition. Moreover, buyers who tend to purchase fresh seafood can also be easily switched from buying from one seller to another.
There is a perception that all products that are characterized by small producers and individual buyers does not have the ability to alter their selling products are said to exhibit tendencies toward pure competition. It is also argued that all industries that deal with fish marketing are more likely to exhibits some of the characteristics of pure or perfect competition. Thus, fresh seafood can fit in this category that exhibit tendencies toward pure competition.
Products that are categorized in monopolistic competition may exhibit some of the characters of the pure competition. The only difference is that products in pure competition are homogenous whereas products in monopolistic competition are non-homogenous. This means that they are similar but are differentiated in certain ways. Some of the products that are offered in Capital Grill that exhibit tendencies toward monopolistic competition may include dairy based products. These products may include milk, yoghurt and butter (Plunkett, et al, 2009). These products are all similar as they are types of dairy based products; however, they are differentiated, as they are different dairy types. For this reason, it can be evidenced that the three products are fitting in this category as they contains some of the characteristics that are closest to monopolistic competition.
It is argued that all agricultural products can fit in the category of monopolistic competition as the products are similar but they differentiate them in order to make their customers loyal to them. From this perspective, it can be seen that milk, yoghurt and butter can fit in this category that contains products that exhibit tendencies that are closest to monopolistic competition.
One of the products offered in Capital Grille Restaurant and exhibit tendencies towards monopoly is dry aged steaks (Plunkett, et al, 2009). This is the only restaurant that tends to offer such type of meat. For a product to fit in this category, it should only be offered in this company. This means that Capital Grille is only one restaurant which is offering dry aged streaks. One of the reasons why this product fits in this group is that it contains some of the characteristics that are associated by products in monopoly. Due to the fact that this product is not offered in other restaurant, it can be seen to face no competition. This reason makes it to be viable in this category of products that tends to exhibits tendencies that are closest or toward monopoly. From the above point of view, it can be seen that dry aged steaks is one of the major products that exhibits tendencies towards monopoly.
- Plunkett, Jack W., & Plunkett, Jack W. (2009). Plunkett’s Food Industry Almanac 2009: The Only Comprehensive Guide to Food Companies and Trends. Plunkett Research Ltd.
- Wollenberg, W. (2006). Night + day Chicago. San Francisco, CA: Pulse Guides.