Is Burger King's part of Monopolistic ompetition

                               

Monopolistic competition is a market structure where many companies sell similar product, but are not identical. Some examples of monopolistic competitor market are fast-food restaurant, books, and clothing. To examine the fast food market we find many firms that produce a hamburger, such as Burger King, McDonald's, and Wendy’s.

Non-price competition is a way of how firms attract consumers with factors other than price, such as style, service, or location. So how Burger King has used non-price competition to convince customers to come to them instead of other burger places? Burger King has over 12,700 outlets found all worldwide in 73 different countries. Burger King has divided their dining areas into separate zones for larger groups, eat-and-run customers, and for those who stay there to rest. Burger King has also added flat-screen TV’s to many of their locations despite less than half of the remodelled restaurants will display them.

Burger King, McDonald's  and Wendy’s are differentiate their hamburger and they are not made exactly the same. As Wendy’s raises their prices, some of their customers will begin eating at Burger King, while others will remain loyal to Wendy’s. This is a function of the downward demand curve that firms in a monopolistic competitive market structure experience. As price increases, quantity decreases. Similarly as price decreases, quantity increases.



By, Kee Chin Nee
0315317