In monopolistic competition, the supernormal profits of Apple will attract new seller to to enter the market since there are low barriers of entry. Since markets are becoming more competitive, the demand is getting inelastic.

Apple is a leading company in specilization of products. Most probably, I would not buy Mac because I am not used to its typing system in keyboard and also I am not used to the system of Mac and I find Windows more practical.

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I agree with what you said except the fact that Apple profits will increase amazingly. A monopolistic competition market makes it VERY hard to have supernatural profits in the long run.

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2. Eventually under monopolistic competition, Apple will lose its supernatural profits as new firms get into the business. If Apple wants to keep making supernatural profits, it must keep differentiating its products as it has been doing of late.

3. Usually, it is with different features or operating systems. Also, the display and speed of the computer and its processor come into play. I would not but a mac wheel as I type faster on a keyboard than on a trackpad unless proved otherwise.

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I agree with your answer for the third question. I also think that apple is the ONLY company that actually invents new products. And the design of their products are pretty cool!!

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In monopolistic competition, apple would not be able to make supernormal profit in the future, since many companies would join the laptop market. In monopolistic competition, there is no barrier to join the market, and apple’s supernormal profit would attract other companies to join, apple would make normal profit in the future. If Apple wishes to maintain its profits in the long-run, it has to develop and upgrade new products so it can prove that its products are different and superior compare to other companies’ product.

In the real ways, Apple attempts to differentiate their products by changing the design, upgrading, and advertising their product. In Japan, it is easy to see an advertisement for iPhone 5 and iPad, and big poster of the iPhone and iPad is always posted on the wall in front of ‘Softbank’ (Japanese Telecommunication Company), which grabs consumer’s attention and makes them to buy it. I don’t think I would buy MacBook Wheel because it sounds inconvenient for me. I am really bad at technology, so I even don’t like MacBook that much. But I would buy other Apple products, since I found it really convenient (iPod, iPhone, and such.)

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I agree with you when you say that the shift to the to the right of the demand curve was a result of the introduction to the market of the new product. This is because it is the reality, and it is the correct and most obvious answer.

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Assuming the market for laptop computers is monopolistically competitive, what will likely happen to Apples economic profits over time? What must Apple do if it wishes to maintain its profits in the long-run?

What are some real ways companies like Apple and its competitors have attempted to differentiate their products over the years? Would YOU buys a MacBook Wheel if it were real?

This happens because people want to have the newest things in the world, and want to have the best ones as well. By saying the best ones, I mean that everything that is new, is supposedly better than things already created. This means that new computers would be bought just to have the "best".

What will happen to Apples economic profits over time is that they will increase amazingly. This is because people will satrt changing to Apple and leaving other computers, just because Apple works better. What Apple must do is that they should innovate computers and products not very far from each other. This means that they should regularly innovate their models.

Some real ways companies like Apple and its competitors have attemptes to differentiate their products over the years would be new systems, and much more "space" and memory, to do a lot of nw things in the computer, attempt to be the best for what the human needs. I would buy a MacBook Wheel because it is a very good machine and with a great quality as well.

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2.)I think in this situation, the demand for Apple is not going to stay the same. The products are going to be so similar.

3.) Honestly ? am also a fan of Apple, because ? think in this computer market, Apple is the only company that tries to invent new things and develop versions of series. Plus, Apple uses the most well qualified techniques and items when creating sth. So if it was real, ? would buy it ( but as it is going to be a very expensive product, ? would wait for prices to fall a bit, then ? would buy it )

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I agree with your comments about questions. Actually, you got the right point in second question because I think it is the best way for Apple to continue to diffentiate their products.

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When Apple differentiate its product, demand of it increase because people started interest with apple more so we can say that Apple was successful when they differentiate their products and produce new products. As in article mentioned; “Through differentiation, which means making its products unique and attractive to consumers, Apple attempts to increase market demand for its computers, while simultaneously making demand less elastic.” So Apple can make more profit by changing their price easier because they became more monopolistic and after the differentiation their demand curve became inelastic.

2.Assuming the market for laptop computers is monopolistically competitive, what will likely happen to Apples economic profits over time? What must Apple do if it wishes to maintain its profits in the long-run?

After a time Apple started make normal profit and do not have any more supernormal profit because when other firm see how demand is inelastic and profit is much they want to also participate those markets to share profit so Apple profit will become normal profit. If Apple wishes to maintain its profits in the long-run, Apple should continue to differentiate their products.

3.What are some real ways companies like Apple and its competitors have attempted to differentiate their products over the years? Would YOU buys a MacBook Wheel if it were real?

They are differentiating their old products buy using new technologies and their imaginary so they became more successful. Lastly, I would not buy a Macbook Wheel if it were real because I love to use keyboard.

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In the graphs above, the slopes of the demand curve increases after successful product differentiation by Apple. Why does this happen?

The shift to the to the right of the demand curve was a result of the introduction to the market of the new product. This change in the demand was cause by factors as advertisement, innovation and loyalty to the firm. This non-price competition factors make the demand curve of the Mac product go to the right.

Assuming the market for laptop computers is monopolistically competitive, what will likely happen to Apples economic profits over time? What must Apple do if it wishes to maintain its profits in the long-run?

Assuming that the market for laptop computers is monopolistically competitive the economic profits of Apple will become normal profits because many companies will enter the market attracted by the supernormal profits. The excess of suppliers in the long run will produce the price of the product go down until the point which the profits are normal.

What are some real ways companies like Apple and its competitors have attempted to differentiate their products over the years? Would YOU buys a MacBook Wheel if it were real?

Apple and its competitors have attempted to differentiate their products over the years by innovation and making the consumers loyal to their products. I will not buy the Macbook Wheel if it were real because the wheel will make me waste a lot of time as well the mouse.

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I tottaly agreee with your response. "In monopolistic competition, the only way for a company to increase their profits is to produce new and attractive products." at this sentence you're totaly right. Because as we see from our da?ly l?fe, people always want to have different type products. So when new and attractive products are produced the profits that compines make will increase .

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Apple company always present different types of product to the market and this feature makes them different than other companies. Moreover, consumers are attracted by diffirentiated products, so the slope of graph rise due to demand becoming inelastic. So, when a consumer gets an apple product apple becomes more stronger than other companies.

2. Assuming the market for laptop computers is monopolistically competitive, what will likely happen to Apples economic profits over time? What must Apple do if it wishes to maintain its profits in the long-run?

In monopolistically competitive , and in the long term supernormal profit will change into normal profit. In order to maintain its profit in the long run, apple should continue to produce differentiated products to continue to make supernormal profits and to make its place stable in the market.

3. What are some real ways companies like Apple and its competitors have attempted to differentiate their products over the years? Would YOU buys a MacBook Wheel if it were real?

Other companies have differentiated their products generally by improving the old type products. For example; new iPod models. Furthermore, in order to introduce the products many companies pay too much money for advertising like with Mac and Pc commercials.

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I like your point and agree with you. You said people are tend to buy new products and they don't care about the price. Therefore they prefer Apple. Then you show Apple as a veblen good which is very logical.

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