According to Korbinian and Milena (2015) students often forget the economic concepts taught a few years after they leave schools, and as such this article looks at the instructional method that can be best applied in the teaching of economic concepts to ensure that students understand the applicability of the economic principles. Students can be encouraged to participate in these experiments using incentives such as the bonus points. To maximize this learning approach students are encouraged are advised to promote a post-experiment approach where students are allowed to discuss what they did in the experiments. The functions used provide an opportunity for the students to be effective and use the equations in finding how profits are determined in a monopolistic market.
Aleksey (2018) explores the challenges of oligopoly and how the players in this market structure misuse their power when deciding the kind of prices to charge for their products. They do this by ensuring that new secondary companies do not influence the market. The author established the characteristics that identify an oligopoly market. One of the visible features, as illustrated in the market, is the composition of a few traders in the market who have control over the goods produced in the market. They have this power because they are the ones who determine the prices of products in this market structure. The article examines the oligopoly by concluding different industries such as the airline and banking industry. Through reviewing the sectors, the author justifies the big players in those respective industries have been able to maintain their influence amid other emerging companies.
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The articles are both centered on the analysis of two market structures, the oligopoly and the monopolistic. Korbinian and Milena (2015) address issues regarding the understanding of microeconomic concepts through devising teaching techniques that economic teachers can use to ensure that students grasp the contents taught as well as their applicability. Although it majored on teaching techniques, it provides some insightful features regarding the monopolistic market. It reveals that the monopolistic market comprises of many sellers and none of them has control over the price of the products. This concept informs the difference between the two articles. Whereas the first article looks at how traders in a monopolistic market cannot control prices of the goods and services produced in the economy, in oligopoly, firms are few and have total control over the costs of products produced in the marketplace.
The difference in the articles is the approach taken to analyze the situation in the two market structure. One involves the use of practical examples by students, while the one on oligopoly analyses different industries and how the considered giants in those industries have been able to maintain their position in those market. Moreover, profit maximization in the monopolistic market is complex and cannot be merely calculated through an equation that cannot be practically determined. In an oligopoly, profit maximization is easily achievable because they have total control of the prices, and as such they might hike the prices of their products to achieve the needed profit. The firms have control in the regions where they operate, and this leaves them as the only provider of the goods and services. Therefore, customers do not have any choice, but to purchase the products and services at the prices which they are sold. This further justifies the lack of influence of market forces in the oligopoly market as in the case with the monopolistic market.
The first article on the monopolistic market structure provides a way in which profit maximization can be determined in a monopolistic market. The analysis of this market has been a problem because students who have gone through microeconomic classes did not have the knowledge required to be able to understand the market structure due to ineffective teaching methods. Therefore, the technique analyzed in the article is an important milestone towards the effective teaching of economics to students for effective applicability of the concepts taught. I conquer with the authors of the article on the method that should be adopted to explain the monopolistic structure.
Often, students are taken through theoretical learning which limits their knowledge on how the concepts learned can be applied in practical situations like in the experiment adopted. The only area that I do disagree with the authors is that they major on cost and demand functions as perfect ways of determining price in the monopolistic market. Determination of price in a monopolistic market involves a lot more than just establishing the functions. In the article on oligopoly, the author has provided different examples of industries with oligopoly firms and how they have enhanced their position in the market. The use of different industries provides a clear picture of the functioning of the market structure because what is not well understood in one of the examples can be understood through the use of another example. The existing loophole is that the authors did not demonstrate the benefits that the setting of high prices in this market might have to consumers. This might provide the wrong perception if the high prices that are set do not result in high profits.
References
Korbinian von Blanckenburg and Milena Neubert(2015). Monopoly Profit Maximization: Success and Economic Principles. Economics Research International, Volume 2015, Article ID 875301. Retrieved from http://googleweblight.com/i?u=http://dx.doi.org/10.1155/2015/875301&hl=en-KE&tg=85
The Nest. (2018, September 17). The Oligopoly Problem. (A. Alerksic, Ed.). Retrieved from https://www.ahsthenest.com/news/2018/09/17/the-oligopoly-problem/
