Thursday, December 2, 2010
Five Things I Purchased
Ok so the first thing I bought on black Friday was (1) gas; the thing teens hate paying for and what I spend all my money on. Anyway, I think gas would be in the oligopoly category. There aren’t many companies in the gas industry. The entry into the market is not very east compared to other industries, so I believe gas stations would be in the oligopoly category. The next items I bought were (2) clothes. Unlike gas, clothes are in the monopolistic competition category. There are so many companies in the clothes industry because people like variety, and people have different styles. For example, I bought clothes at Gap (everything was ½ off on black Friday), H&M, Urban Outfitters, American Eagle, Abercrombie and Fitch, Hollister, and Express I didn’t even visit all the sores in the mall. Next, I bought (3) Uggs! I have wanted a new pair for a long time and even though they weren’t on sale (they never go on sale) I bought them. They’re so cute and I didn’t have any mini Uggs before this. Anyway, Uggs are in the monopolistic competition because there are tons of companies that sell boots. Just to name a few there’s Bear Paw, Old Friend, Emu, and a bunch of stores like Old Navy, Famous Footwear, and DSW sell the boots with a very similar design. However, Uggs many people are loyal to the Ugg brand because they have high quality and long-lasting shoes. Ugg almost has a monopoly on the classic short style of sheepskin fur boots. If one were to walk through the halls of my school you see Uggs everywhere you look, and hardly any of the other brands mentioned above. After the mall, my sister and I met my mom at a car dealership to buy a (4) new car for my dad for Christmas. Car dealers would be an example of an oligopoly. There are few dealerships and it is not easy to gain entry into the market, which is why they would be an oligopoly. Finally after a long day of shopping, we stopped at a drink cart and I bought a (5) Pepsi. Pepsi is a monopolistic competition because if I thought the price was too high, I could have easily purchased a Coke, Sprite, Gatorade, or any other drink. Entry into the drink market is pretty easy, the companies do a fair amount of advertising, and there are many companies in the business.