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:
“It is so rare to meet with a man outdoors who cherishes a worthy thought in his mind, which is independent of the labor of his hands. Behind every man’s busy-ness there should be a level of undisturbed serenity and industry, as within the reef encircling a coral isle there is always an expanse of still water, where the depositions are going on which will finally raise it above the surface.”
—Henry David Thoreau (1817–1862)
“Moral choices do not depend on personal preference and private decision but on right reason and, I would add, divine order.”
—Basil Hume (b. 1923)
“What stunned me was the regular assertion that feminists were “anti-family.” . . . It was motherhood that got me into the movement in the first place. I became an activist after recognizing how excruciatingly personal the political was to me and my sons. It was the women’s movement that put self-esteem back into “just a housewife,” rescuing our intelligence from the junk pile of “instinct” and making it human, deliberate, powerful.”
—Mary Kay Blakely (20th century)