Independent Decision Making
Each MC firm independently sets the terms of exchange for its product. The firm gives no consideration to what effect its decision may have on competitors. The theory is that any action will have such a negligible effect on the overall market demand that an MC firm can act without fear of prompting heightened competition. In other words each firm feels free to set prices as if it were a monopoly rather than an oligopoly.
Read more about this topic: Monopolistic Competition
Famous quotes containing the words independent, decision and/or making:
“In the great department store of life, baseball is the toy department.”
—Los Angeles Sportscaster. quoted in Independent Magazine (London, Sept. 28, 1991)
“Because of these convictions, I made a personal decision in the 1964 Presidential campaign to make education a fundamental issue and to put it high on the nation’s agenda. I proposed to act on my belief that regardless of a family’s financial condition, education should be available to every child in the United States—as much education as he could absorb.”
—Lyndon Baines Johnson (1908–1973)
“my soul lingers over the skin of you
and I wonder if I’m ruining all we had,
and had not,
by making this break,
this torn wedding ring,
this wrenched life....”
—Anne Sexton (1928–1974)