1.4: Art in Society
Religion as a Theme
Christian, Buddhist, and Islamic artistic traditions have used elements of symbolism, narrative, ritual, iconoclasm, and authorship to express the tenets of their beliefs throughout history.
Summarize the history and elements of Christian, Buddhist, and Islamic art
Key Points
- Christian sacred art is produced in an attempt to illustrate, supplement, and portray, in tangible form , the principles of Christianity; most Christian art is built around themes familiar to the intended observer.
- Buddhist art followed believers as the dharma spread and evolved in each new host country. It developed to the north through Central Asia and into Eastern Asia to form the Northern branch of Buddhist art; and to the east as far as Southeast Asia to form the Southern branch of Buddhist art.
- Islamic art prohibited the depiction of representational images in religious art . Therefore, the naturally decorative nature of Arabic script led to the use of calligraphic decorations, which usually involved repeating geometrical patterns that expressed ideals of order and nature.
- Religion and spirituality has been a theme in art throughout history and throughout many areas of the world, from Hinduism and Judaism to indigenous spiritual practices.
Key Terms
- iconoclasm :The deliberate destruction of religious icons and other symbols or monuments, usually with religious or political motives.
- religious art :Artistic imagery using religious inspiration and motifs, often intended to uplift the mind to the spiritual.
Religious art is art that makes use of religious inspiration and/or motifs . It is often intended to uplift the mind to the spiritual or communicate the principles of the religion. While incredibly large and varied individually, we can identify certain elements that Christian, Buddhist, and Islamic artistic traditions have used to express the tenets of their beliefs using symbolism , ritual , iconoclasm , and authorship.
Christian Art
Christian art is typically produced in order to illustrate the various principles and narratives of the religion. Throughout time, most Christian sects have used art to some extent, though there have been definite periods of iconoclasm within the history of the religion. Most Christian art alludes to themes that are familiar to a practicing Christian, such as the Virgin Mary holding the baby Jesus or the crucifixion. While Christianity is a monotheistic religion, Christians believe God is triune, meaning that the three persons of the Trinity (Father, Son, and Holy Spirit) are in one union in which each figure is also wholly God. Most Christian art focuses on Jesus, particularly at the Crucifixion or stories from the Bible, while the Holy Spirit is often depicted as a dove or tongue of fire. God as the Father of Jesus is rarely visually depicted.
Christianity has historically made use of an elaborate iconographic system, whereby each saint is associated with a particular object or animal. For example, Saint Peter is depicted with keys and Saint Patrick is depicted with a shamrock in order to quickly convey narratives to potentially illiterate audiences.
Buddhist Art
Buddhist art originated on the Indian subcontinent following the historical life of Siddhartha Gautama, also known as Gautama Buddha, in the sixth to fifth century BCE, evolving via contact with other cultures as it spread throughout Asia and the world. Buddhist art followed believers as the dharma spread, adapted, and evolved in each new host country. It developed to the north through Central Asia and into Eastern Asia to form the Northern branch of Buddhist art and to the east as far as Southeast Asia to form the Southern branch of Buddhist art. In India, Buddhist art flourished and even influenced the development of Hindu art, while Tibetan Buddhist art was created as a meditation practice. An important example of Tibetan meditation art is the sand mandala , made and used by monks for meditation.
Thematically, Buddhist art is typically comprised of devotional works depicting mythology and narratives associated with the Buddha and bodhisattvas . There is great variation in the types of Buddhist art as the religion is so vast. Some Buddhist art contains animist themes, meaning the depiction of natural elements (animals, nature, earth) as spiritual entities. The creation of art has traditionally been considered both a meditation itself, as well as a method to produce an object to aid others in meditation. Works are rarely, if ever, signed by the artist or group of artists, as the art-making process is considered sacred and communal.
Islamic Art
Islamic art prohibits representational images in religious art, and evolved to be comprised mainly of calligraphic decorations and repetitive geometric patterns. Intended to express the ideals of order and of nature, these geometric patterns are used to adorn religious architecture, carpets, manuscripts, and other art objects. Sacred Islamic art reflects a worldview focused on spiritual essence as opposed to physical form.
Calligraphy is the most highly regarded and most fundamental element of Islamic art. The employment of calligraphy as ornament had a definite aesthetic appeal but often also included an underlying talismanic component. Geometric patterns make up one of the three non-figurative types of decoration in Islamic art, which also includes calligraphy and vegetal patterns. Abstract designs not only adorn the surfaces of monumental Islamic architecture but also function as the major decorative element on a vast array of objects of all types.
The Market
The key components of the art market are the gallery, curator, dealer, consultant, and collector.
Summarize the roles of the gallery, curator, dealer, consultant, and collector in the art market
Key Points
- The art market is an economic ecosystem that relies not only on supply and demand, but also on the fabrication of a work’s predicted future monetary and/or cultural value .
- The primary art market refers to art that enters the market for the first time. The secondary market refers to artworks that have been sold at least once before.
- An art dealer is a person or company who buys and sells works of art.
- Art galleries are commercial or privately funded businesses that deal in artworks, typically made by contemporary artists.
- The curator is the manager or director of the gallery who traditionally programs the space and organizes art shows.
- Art fairs act as conventions or large-scale shows where galleries display the work of select artists whom they represent.
Key Terms
- nonprofit :An organization that exists for reasons other than to make a profit, such as a charitable, educational, or service organization.
- curator :A person who manages, administers, or organizes a collection, either independently or employed by a museum, library, archive, or zoo.
The art market is an economic ecosystem that relies not only on supply and demand, but on the fabrication of a work’s predicted future monetary and/or cultural value. The art market can appear somewhat unclear, since artists do not make art with the sole intention of selling it, and buyers often have no idea of the value of their purchase.
The art market is made up of two parts: the primary market and the secondary market. The primary art market refers to art that enters the market for the first time, while the secondary market refers to artworks that have been sold at least once before.
Once a work is sold, it enters the secondary market and the price at which it sold has a direct influence on its subsequent price. For example, the Picasso painting Garçon à la Pipe sold for $104.2 million at auction, thereby setting its worth at $104.2 million. Supply and demand affects the secondary market more than the primary market, as contemporary art with no market history relies on speculative analysis to determine its value.
The important players in the art market are the gallery, curator, dealer, consultant, and collector. Art galleries are commercial or privately funded businesses that deal in artworks, made by contemporary or historical artists. Nonprofit galleries are typically a step above commercial galleries, and include museums and galleries that are funded by the government or charity that do not sell artwork, such as the Tate Modern.
The curator is generally the manager of the gallery and the person who programs the space and organizes art shows. Curators at commercial galleries may have the responsibility of selling work, while those at museums generally maintain the organizational aspects of exhibitions.
Art dealers are persons or companies who buy and sell works of art. They typically seek out artists to represent while simultaneously building relationships with collectors and museums to whom they might be able to sell the work. Dealers are often able to anticipate market trends, and some prominent dealers might be able to influence the taste of the market. Many dealers specialize in a particular style , region, or time period and travel internationally to exhibitions, auctions, artists’ studios, and art fairs to pick up new work. An example of a highly notable art dealer is Larry Gagosian, who also owns Gagosian Gallery, a highly influential art gallery.
Art fairs act as conventions or large-scale shows where galleries display the work of select artists whom they represent and are important to the structure of the contemporary art market. Prominent art fairs include Art Basel, Scope, Frieze Art Fair, NADA, and the Armory Show. The tradition of selling art at auction dates back to the 17th century and continues to thrive today. Art auctions deal in the most highly valued of art, such as works by Picasso, Manet, Jeff Koons, and Andy Warhol. The leading auction houses are Christie’s and Sotheby’s.
National Pride
Art can be used to advance nationalistic goals by providing a state or nation with political and social legitimacy.
Illustrate the relationship between certain types of artwork and national pride
Key Points
- Romantic nationalism refers to the phenomenon by which a state derives power from the unity of those it governs, whether it be through culture , religion, customs, language, or race.
- Romantic nationalism was a key component of Romanticism as well as certain post-Enlightenment philosophies.
- National anthems, national epics, and national treasures are part of the language of Romantic nationalism, and date back to the 18th and 19th centuries.
- Today, cultural heritage—both tangible and intangible—is regarded as highly valuable.
- A “national treasure” refers to shared culture which has been deemed exceptionally valuable.
- Governments influence the artistic output of their regions by presenting grants and awards to artists whose careers they wish to support.
Key Terms
- worldview :The totality of one’s beliefs about reality.
- national treasure :A person, place, or object that is deemed of great value to an entire nation, usually due to its cultural significance.
Art can be used to advance nationalistic goals by providing a state or nation with political and social legitimacy. “Romantic nationalism” refers to the phenomenon by which a state derives power from the unity of those it governs, whether it be through culture, religion, customs, language, or race. Romantic nationalism was a key component of Romanticism as well as certain post-Enlightenment philosophies that focused on the development of national language, folklore, and traditional customs. This form of nationalism arose in reaction to imperial and dynastic hegemony , which acquired legitimacy not from the bottom-up but from the top-down; in other words, from the authority down to the people. National anthems, national epics, and national treasures are part of the language of Romantic nationalism, and date back to the 18th and 19th centuries.
After the 1870s, Romantic nationalism became a very familiar movement in the arts that allowed for a form of reinterpretation of the past, without being considered merely historicist. Nationalist movements for the separation of Finland and the kingdom of Bavaria from Germany proved successful, Czech and Serb nationalism created conflict, Welsh and Irish tongues experienced a poetic revival, and the Zionist movement both revived Hebrew and began immigration to Israel. In the first few decades of the 20 th century, Romantic nationalism had exerted an important influence on political events. The belief that nation states forming around unities in culture and ethnicity was in some sense “natural” was prominently held. After the Second World War, however, Romantic nationalism took on a darker tone .
Some degree of art-based national pride still exists today. The age-old notion of the state gaining political prowess through its artistic output still holds true. Cultural heritage—both tangible and intangible—is regarded as highly valuable. It is not uncommon for museums and art galleries to be owned by the state, thereby imparting biased and/or nationalistic world views on exhibitions. A “national treasure” refers to shared culture which has been deemed exceptionally valuable and could be a skilled musician, such as Yo-Yo Ma, or a cultural object of great value , such as Britain’s Bayeux tapestry . Governments influence the artistic output of their regions by presenting grants and awards to artists whose careers they wish to support—a model which is not unlike the dynastic patronage common throughout Europe in the past.
Museums and Private Collections
Museums and private collections are engaged in both the collection and display of works of art.
Discuss the history and role of museums and private collections in the consumption of art
Key Points
- Early museums began as the private collections of wealthy families and individuals.
- “Cabinets of curiosity,” or cabinets that held collections of artifacts and art objects, were the beginnings of museums and private collections.
- The majority of significant museums were opened to the public in the 18th century Enlightenment Era, such as the Louvre and the Hermitage Museum.
- Numerous art works in museums today were donated from private collections.
- It is not uncommon to see a note next to a work of art in a temporary museum exhibition, stating that it is on loan from a particular private collection.
Key Terms
- engaged :Attached to a wall or sunk into it halfway.
- Enlightenment :A philosophical movement in 17th- and 18th-century Europe; the Age of Enlightenment, or the Age of Reason, emphasized rationalism.
- conservation :The act of preserving, guarding, or protecting; the keeping (of a thing) in a safe or entire state; preservation.
Museums are institutions that collect art objects and make them available for public viewing through either permanent or temporary exhibitions. A museum does not sell works of art, but essentially holds them in public trust, and engages in varying levels of education and conservation practices. Private collections are privately owned works of art which may or may not be available for viewing by the public. Museums and private collections are both engaged in the collection and display of works of art.
Early museums began as the private collections of wealthy families and individuals. Originally, only nobility collected art, but soon the wealthy classes began to adopt the habit of collecting and displaying archaeological and art objects in their salons and living rooms. “Cabinets of curiosity,” or cabinets that held these collections of artifacts and art objects, became commonplace, and were the beginnings of museums and private collections. Often, these private collections were available for viewing by the so-called “respectable” public, but the majority did not become open to the public until the 18th century.
The majority of significant museums were opened to the public in the 18th century, or the Enlightenment era, a time known for its pursuit and dissemination of knowledge throughout society. The arts were especially important during the Enlightenment and viewed as a deeply noble pursuit. The Grand Tour , which became very popular during this time, solidified the habit of collecting works for display from these trips abroad. Many of the most significant private collections of art were opened to the public in the 18th century, such as the Uffizi gallery in Florence, Italy; The Louvre in Paris, France; and The Hermitage Museum, founded in 1764 by Catherine the Great.
Numerous art works in museums today were in fact donations from private collections. In addition, commonly a note is posted next to a work of art in a temporary museum exhibition stating that it is on loan from a particular private collection. Currently, some private collections remain private, while some are available for public viewings. The Frick Collection in New York City is one of the preeminent small art museums in the city. Housed in the mansion of its owner, Henry Clay Frick, the collection includes old master paintings by Jan van Eyck, Fragonard, Rembrandt, and others.
Preservation and Restoration
Preservation and restoration is a profession devoted to the conservation of cultural heritage, such as works of art, for future generations.
Examine the profession of preserving and restoring art
Key Points
- The goal of the conservator is to attempt to maintain cultural heritage objects as close to their original condition as possible, for as long as possible.
- The tradition of conservation is considered by most to have begun in 1565, with the restoration of the Sistine Chapel frescoes .
- Today, all museums employ teams of conservators to keep their collections up to date, conduct frequent tests, and engage in analysis and documentation.
- Conservators are often involved in what is termed “preventative conservation,” which refers to protecting art and cultural works from damage from environmental conditions, such as temperature, humidity, and exposure to light.
- A guiding principle of conservation is the idea of “reversibility”; that is, any intervention with the object should be fully reversible.
- “Interventive conservation” refers to any act that involves a direct interaction between the conservator and the cultural material, such as cleaning, stabilizing, repairing, or replacing of parts.
Key Terms
- fresco :In painting, the technique of applying water-based pigment to wet or fresh lime mortar or plaster.
- conservator :A professional who works on the conservation and restoration of objects, particularly artistic objects.
Preservation and restoration is a profession devoted to the conservation of cultural heritage, such as works of art, for future generations. The activities involved in this profession include examination, documentation, treatment, and preventative conservation. The goal of the conservator is to attempt to maintain cultural heritage objects as close to their original condition as possible, for as long as possible. The conservator acts as a sort of steward for these objects, which range from archaeological to artistic.
The tradition of conservation is considered by most to have begun in 1565, with the restoration of the Sistine Chapel frescoes. During the 19th century, the fields of science and art became somewhat intertwined, and scientific processes were used to care for artistic objects. Today, all museums employ teams of conservators to keep their collections up-to-date, conduct frequent tests, and engage in analysis and documentation. In addition, numerous organizations create standardized methodologies for the conservation of art objects, such as the International Institute for the Conservation of Historic and Artistic Works and the American Institute for Conservation.
The conservator’s activities are guided by ethical standards. They must choose if, when, and how to alter a work of art in order to bring it closer to its original state. Since the original state is often beyond the conservator’s lifetime, a certain degree of guesswork is required. Conservators are often involved in what is termed “preventative conservation,” which refers to protecting art and cultural works from damage from environmental conditions, such as temperature, humidity, and exposure to light. This is why, for example, it is common to see textiles or photography exhibited in dimly-lit galleries.
A guiding principle of conservation is the idea of “reversibility”; that is, any intervention with the object should be fully reversible, and the object should be able to be returned to its original state. “Interventive conservation” refers to any act that involves a direct interaction between the conservator and the cultural material, such as cleaning, stabilizing, repairing, or replacing of parts. The conservator is required to fully justify any work of this sort and to complete documentation of the process before and after. Examples of interventive conservation include securing flaking paint and the tinted varnish treatment, whereby the restorer applies a tinted varnish over the original varnish, giving the illusion that spots on a work have been repainted.
Conflicts
Destruction, mislabeling, appropriation, and repossession can contribute to conflicts surrounding the preservation of art.
Summarize the events that can contribute to conflicts in terms of the preservation of art
Key Points
- War, political unrest, accidents, and disaster are the typical outside factors that contribute to the non- preservation of art.
- Looting refers to when art is stolen during such times of conflict.
- Art repatriation refers to the process of returning artworks to their rightful owners.
- The use, or appropriation of, art has inspired much controversy and contributed to cultural subjugation. A prime example of appropriation and subjugation is seen in the appropriation of sacred Native American images, iconography , and sculptures for commercial use by non-natives.
- Copyright can give the creator of an original work exclusive rights to it, usually for a limited time.
Key Terms
- Copyright :The right by law to be the entity which determines who may publish, copy, and distribute a piece of writing, music, picture, or other work of authorship.
- appropriation :The use of pre-existing objects or images with little or no transformation applied to them.
While institutions and owners do their best to preserve works of art, it is not uncommon for conflicts to arise due to issues related to ownership, human error, destruction, and appropriation. War, political unrest, accidents, and disaster are the typical outside factors that contribute to preservation conflicts when it comes to works of art.
Ownership conflicts are common, especially during times of unrest, such as war, when there is a higher potential for unethical behavior. Art is often stolen, or looted, during periods of conflict, as well as destroyed. Plunder, appropriation, and spoliation are related terms that describe the process of looting. During World War II, the Nazis looted a lot of European art, much of which was eventually repatriated, or returned to, its rightful owners.
Appropriation is a complex issue in art. The appropriation of Native American iconography, sacred images, and sculptures for commercial use by non-natives has been a source of controversy, contributing to cultural subjugation. The Kachina doll, for example, is a sacred Hopi sculpture that was traditionally meant to be seen only during specific Hopi ritual events. Many commercial replicas have been created to sell to tourists, altering the original intent of the object.
Appropriation has been embraced in certain Western art movements. Dadaist and Surrealist works, for example, typically utilize a great deal of appropriation, as seen in Marcel Duchamp’s L.H.O.O.Q .
A copyright can give the creator of an original work exclusive rights to it, usually for a limited time. However, after that time is up, the work of art might be appropriated and used by others, thereby creating conflict. The internet has further complicated issues surrounding ownership and appropriation, especially in art.
- Curation and Revision. Provided by : Boundless.com. License : CC BY-SA: Attribution-ShareAlike
- Kalachakra. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/File:Kalachakra.jpg. License : Public Domain: No Known Copyright
- VirgenNino. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/File:VirgenNino.jpg. License : Public Domain: No Known Copyright
- Basmalah-1wm. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/File:Basmalah-1wm.png. License : Public Domain: No Known Copyright
- Religious art. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Religious_art. License : CC BY-SA: Attribution-ShareAlike
- iconoclasm. Provided by : Wiktionary. Located at : en.wiktionary.org/wiki/iconoclasm. License : CC BY-SA: Attribution-ShareAlike
- Boundless. Provided by : Boundless Learning. Located at : www.boundless.com//art-history/definition/vajra. License : CC BY-SA: Attribution-ShareAlike
- Boundless. Provided by : Boundless Learning. Located at : www.boundless.com//art-history/definition/religious-art--2. License : CC BY-SA: Attribution-ShareAlike
- Phurba. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Phurba. License : CC BY-SA: Attribution-ShareAlike
- Garu00e7on u00e0 la pipe. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/File:Gar%C3%A7on_%C3%A0_la_pipe.jpg. License : Public Domain: No Known Copyright
- Garu00e7on u00e0 la pipe. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Gar%C3%A7on_%C3%A0_la_pipe. License : CC BY-SA: Attribution-ShareAlike
- International Art Markets. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/International_Art_Markets. License : CC BY-SA: Attribution-ShareAlike
- Art dealer. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Art_dealer. License : CC BY-SA: Attribution-ShareAlike
- The Armory Show (art fair). Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/The_Armory_Show_(art_fair). License : CC BY-SA: Attribution-ShareAlike
- Art valuation. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Art_valuation. License : CC BY-SA: Attribution-ShareAlike
- Art auction. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Art_auction%23Contemporary_market_structure. License : CC BY-SA: Attribution-ShareAlike
- Contemporary art gallery. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Contemporary_art_gallery. License : CC BY-SA: Attribution-ShareAlike
- curator. Provided by : Wiktionary. Located at : en.wiktionary.org/wiki/curator. License : CC BY-SA: Attribution-ShareAlike
- nonprofit. Provided by : Wiktionary. Located at : en.wiktionary.org/wiki/nonprofit. License : CC BY-SA: Attribution-ShareAlike
- Bayeux hawking. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/File:Bayeux_hawking.jpg. License : Public Domain: No Known Copyright
- National treasure. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/National_treasure. License : CC BY-SA: Attribution-ShareAlike
- Culture of the United States. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Culture_of_the_United_States%23The_arts. License : CC BY-SA: Attribution-ShareAlike
- Cultural production and nationalism. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Cultural_production_and_nationalism. License : CC BY-SA: Attribution-ShareAlike
- Romantic nationalism. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Romantic_nationalism. License : CC BY-SA: Attribution-ShareAlike
- worldview. Provided by : Wiktionary. Located at : en.wiktionary.org/wiki/worldview. License : CC BY-SA: Attribution-ShareAlike
- national treasure. Provided by : Wiktionary. Located at : en.wiktionary.org/wiki/national_treasure. License : CC BY-SA: Attribution-ShareAlike
- Le Louvre - Aile Richelieu. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/File:Le_Louvre_-_Aile_Richelieu.jpg. License : CC BY-SA: Attribution-ShareAlike
- Private collection. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Private_collection. License : CC BY-SA: Attribution-ShareAlike
- Museum. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Museum. License : CC BY-SA: Attribution-ShareAlike
- Frick Collection. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Frick_Collection. License : CC BY-SA: Attribution-ShareAlike
- conservation. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/conservation. License : CC BY-SA: Attribution-ShareAlike
- engaged. Provided by : Wiktionary. Located at : en.wiktionary.org/wiki/engaged. License : CC BY-SA: Attribution-ShareAlike
- Enlightenment. Provided by : Wiktionary. Located at : en.wiktionary.org/wiki/Enlightenment. License : CC BY-SA: Attribution-ShareAlike
- Art_Restoration_Painting_and_Frame_Restoration_before_and_after_Oliver_Brothers_Art_Restoration_Boston.jpg. Provided by : Wikipedia. Located at : upload.wikimedia.org/Wikipedia/commons/e/eb/Art_Restoration,_Painting_and_Frame_Restoration,_before_and_after,_Oliver_Brothers_Art_Restoration,_Boston.jpg. License : CC BY-SA: Attribution-ShareAlike
- Conservation-restoration. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Conservation-restoration. License : CC BY-SA: Attribution-ShareAlike
- Art restoration. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Art_restoration. License : CC BY-SA: Attribution-ShareAlike
- New media art preservation. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/New_media_art_preservation. License : CC BY-SA: Attribution-ShareAlike
- fresco. Provided by : Wiktionary. Located at : en.wiktionary.org/wiki/fresco. License : CC BY-SA: Attribution-ShareAlike
- conservator. Provided by : Wiktionary. Located at : en.wiktionary.org/wiki/conservator. License : CC BY-SA: Attribution-ShareAlike
- Marcel Duchamp Mona Lisa LHOOQ. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/File:Marcel_Duchamp_Mona_Lisa_LHOOQ.jpg. License : Public Domain: No Known Copyright
- Cultural heritage. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Cultural_heritage. License : CC BY-SA: Attribution-ShareAlike
- Moral rights (copyright law). Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Moral_rights_(copyright_law). License : CC BY-SA: Attribution-ShareAlike
- Looted art. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Looted_art. License : CC BY-SA: Attribution-ShareAlike
- Appropriation (art). Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Appropriation_(art). License : CC BY-SA: Attribution-ShareAlike
- Cultural property. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Cultural_property. License : CC BY-SA: Attribution-ShareAlike
- Copyright. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Copyright. License : CC BY-SA: Attribution-ShareAlike
- appropriation. Provided by : Wiktionary. Located at : en.wiktionary.org/wiki/appropriation. License : CC BY-SA: Attribution-ShareAlike


3: Unit Rates and Percentages Last updated Save as PDF Page ID 35061 Illustrative Mathematics OpenUp Resources Section 15: Unit of Measurement 15.1: The Burj Khalifa Section 16: Unit Conversion 16.1: Anchoring Units of Measurement 16.2: Measuring with Different-Sized Units 16.3: Converting Units Section 17: Rates 17.1: Comparing Speeds and Prices 17.2: Interpreting Rates 17.3: Equivalent Ratios Have the Same Unit Rates 17.4: More about Constant Speed 17.5: Solving Rate Problems Section 18: Percentages 18.1: Percentages and Double Number Lines 18.2: Percentages and Tape Diagrams 18.3: Benchmark Percentages 18.4: Solving Percentage Problems 18.5: Finding This Percent of That 18.6: Finding the Percentage Section 19: Let's Put it to Work 19.1: Painting a Room Section 20: New Page No image available 20.1: What Are Percentages?


7: Trigonometric Identities and Equations
In this chapter, we discuss how to manipulate trigonometric equations algebraically by applying various formulas and trigonometric identities. We will also investigate some of the ways that trigonometric equations are used to model real-life phenomena.
-
- 7.1: Prelude to Trigonometric Identities and Equations
- Math is everywhere, even in places we might not immediately recognize. For example, mathematical relationships describe the transmission of images, light, and sound. Such phenomena are described using trigonometric equations and functions. In this chapter, we discuss how to manipulate trigonometric equations algebraically by applying various formulas and trigonometric identities.
-
- 7.3: Sum and Difference Identities
- In this section, we will learn techniques that will enable us to solve useful problems. The formulas that follow will simplify many trigonometric expressions and equations. Keep in mind that, throughout this section, the termformula is used synonymously with the word identity.
-
- 7.4: Double-Angle, Half-Angle, and Reduction Formulas
- In this section, we will investigate three additional categories of identities. Double-angle identities are derived from the sum formulas of the fundamental trigonometric functions: sine, cosine, and tangent. Reduction formulas are especially useful in calculus, as they allow us to reduce the power of the trigonometric term. Half-angle formulas allow us to find the value of trigonometric functions involving half-angles, whether the original angle is known or not.
-
- 7.5: Sum-to-Product and Product-to-Sum Formulas
- From the sum and difference identities, we can derive the product-to-sum formulas and the sum-to-product formulas for sine and cosine. The product-to-sum formulas can rewrite products of sines, products of cosines, and products of sine and cosine as sums or differences of sines and cosines. We can also derive the sum-to-product identities from the product-to-sum identities using substitution. The sum-to-product formulas are used to rewrite sum or difference as products of sines and cosines.
-
- 7.6: Solving Trigonometric Equations
- In earlier sections of this chapter, we looked at trigonometric identities. Identities are true for all values in the domain of the variable. In this section, we begin our study of trigonometric equations to study real-world scenarios such as the finding the dimensions of the pyramids.
-
- 7.7: Modeling with Trigonometric Equations
- Many natural phenomena are also periodic. For example, the phases of the moon have a period of approximately 28 days, and birds know to fly south at about the same time each year. So how can we model an equation to reflect periodic behavior? First, we must collect and record data. We then find a function that resembles an observed pattern and alter the function to get adependable model. Here. we will take a deeper look at specific types of periodic behavior and model equations to fit data.


6.1: Representing a Graph by a Matrix
An adjacency matrix is a way of representing an \(\mathtt{n}\) vertex graph \(G=(V,E)\) by an \(\mathtt{n}\times\mathtt{n}\) matrix, \(\mathtt{a}\), whose entries are boolean values.
int n; boolean[][] a; AdjacencyMatrix(int n0) { n = n0; a = new boolean[n][n]; }
The matrix entry \(\mathtt{a[i][j]}\) is defined as
\[\mathtt{a[i][j]}=
\begin{cases}
\mathtt{true} & \text{if } \mathtt{(i,j)}\in E \\
\mathtt{false} & \text{otherwise}
\end{cases}\nonumber\]
The adjacency matrix for the graph in Figure 6.1 is shown in Figure \(\PageIndex{1}\).
In this representation, the operations \(\mathtt{addEdge(i,j)}\), \(\mathtt{removeEdge(i,j)}\), and \(\mathtt{hasEdge(i,j)}\) just involve setting or reading the matrix entry \(\mathtt{a[i][j]}\):
void addEdge(int i, int j) { a[i][j] = true; } void removeEdge(int i, int j) { a[i][j] = false; } boolean hasEdge(int i, int j) { return a[i][j]; }
These operations clearly take constant time per operation.
| 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 0 | 0 | 1 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 1 | 1 | 0 | 1 | 0 | 0 | 1 | 1 | 0 | 0 | 0 | 0 | 0 |
| 2 | 1 | 0 | 0 | 1 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 |
| 3 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 0 |
| 4 | 1 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 1 | 0 | 0 | 0 |
| 5 | 0 | 1 | 1 | 0 | 1 | 0 | 1 | 0 | 0 | 1 | 0 | 0 |
| 6 | 0 | 0 | 1 | 0 | 0 | 1 | 0 | 1 | 0 | 0 | 1 | 0 |
| 7 | 0 | 0 | 0 | 1 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
| 8 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 1 | 0 | 0 |
| 9 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 1 | 0 | 1 | 0 |
| 10 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 1 | 0 | 1 |
| 11 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 1 | 0 |
Where the adjacency matrix performs poorly is with the \(\mathtt{outEdges(i)}\) and \(\mathtt{inEdges(i)}\) operations. To implement these, we must scan all \(\mathtt{n}\) entries in the corresponding row or column of \(\mathtt{a}\) and gather up all the indices, \(\mathtt{j}\), where \(\mathtt{a[i][j]}\), respectively \(\mathtt{a[j][i]}\), is true.
List<Integer> outEdges(int i) { List<Integer> edges = new ArrayList<Integer>(); for (int j = 0; j < n; j++) if (a[i][j]) edges.add(j); return edges; } List<Integer> inEdges(int i) { List<Integer> edges = new ArrayList<Integer>(); for (int j = 0; j < n; j++) if (a[j][i]) edges.add(j); return edges; }
These operations clearly take \(O(\mathtt{n})\) time per operation.
Another drawback of the adjacency matrix representation is that it is large. It stores an \(\mathtt{n}\times \mathtt{n}\) boolean matrix, so it requires at least \(\mathtt{n}^2\) bits of memory. The implementation here uses a matrix of \(\mathtt{boolean}\) values so it actually uses on the order of \(\mathtt{n}^2\) bytes of memory. A more careful implementation, which packs \(\mathtt{w}\) boolean values into each word of memory, could reduce this space usage to \(O(\mathtt{n}^2/\mathtt{w})\) words of memory.
Theorem \(\PageIndex{1}\)
The AdjacencyMatrix data structure implements the Graph interface. An AdjacencyMatrix supports the operations
- \(\mathtt{addEdge(i,j)}\), \(\mathtt{removeEdge(i,j)}\), and \(\mathtt{hasEdge(i,j)}\) in constant time per operation; and
- \(\mathtt{inEdges(i)}\), and \(\mathtt{outEdges(i)}\) in \(O(\mathtt{n})\) time per operation.
The space used by an AdjacencyMatrix is \(O(\mathtt{n}^2)\).
Despite its high memory requirements and poor performance of the \(\mathtt{inEdges(i)}\) and \(\mathtt{outEdges(i)}\) operations, an AdjacencyMatrix can still be useful for some applications. In particular, when the graph \(G\) is dense , i.e., it has close to \(\mathtt{n}^2\) edges, then a memory usage of \(\mathtt{n}^2\) may be acceptable.
The AdjacencyMatrix data structure is also commonly used because algebraic operations on the matrix \(\mathtt{a}\) can be used to efficiently compute properties of the graph \(G\). This is a topic for a course on algorithms, but we point out one such property here: If we treat the entries of \(\mathtt{a}\) as integers (1 for \(\mathtt{true}\) and 0 for \(\mathtt{false}\)) and multiply \(\mathtt{a}\) by itself using matrix multiplication then we get the matrix \(\mathtt{a}^2\). Recall, from the definition of matrix multiplication, that
\[\mathtt{a^2[i][j]} = \sum_{k=0}^{\mathtt{n}-1} \mathtt{a[i][k]}\cdot \mathtt{a[k][j]} \enspace .\nonumber\]
Interpreting this sum in terms of the graph \(G\), this formula counts the number of vertices, \(\mathtt{k}\), such that \(G\) contains both edges \(\mathtt{(i,k)}\) and \(\mathtt{(k,j)}\). That is, it counts the number of paths from \(\mathtt{i}\) to \(\mathtt{j}\) (through intermediate vertices, \(\mathtt{k}\)) whose length is exactly two. This observation is the foundation of an algorithm that computes the shortest paths between all pairs of vertices in \(G\) using only \(O(\log \mathtt{n})\) matrix multiplications.


12.1: Monopolistic Competition
-
- Last updated
- Save as PDF
- Boundless
- Boundless
Defining Monopolistic Competition
Monopolistic competition is a type of imperfect competition such that many producers sell products that are differentiated from one another.
learning objectives
- Evaluate the characteristics and outcomes of markets with imperfect competition
Monopolistic Competition
Monopolistic competition is a type of imperfect competition such that many producers sell products that are differentiated from one another as goods but not perfect substitutes (such as from branding, quality, or location). In monopolistic competition, a firm takes the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms.
Unlike in perfect competition, firms that are monopolistically competitive maintain spare capacity. Models of monopolistic competition are often used to model industries. Textbook examples of industries with market structures similar to monopolistic competition include restaurants, cereal, clothing, shoes, and service industries in large cities.
Clothing : The clothing industry is monopolistically competitive because firms have differentiated products and market power.
Monopolistic competition is different from a monopoly. A monopoly exists when a person or entity is the exclusive supplier of a good or service in a market. The demand is inelastic and the market is inefficient.
Monopolistic competitive markets:
- have products that are highly differentiated, meaning that there is a perception that the goods are different for reasons other than price;
- have many firms providing the good or service;
- firms can freely enter and exits in the long-run;
- firms can make decisions independently;
- there is some degree of market power, meaning producers have some control over price; and
- buyers and sellers have imperfect information.
Sources of Market Inefficiency
Markets that have monopolistic competition are inefficient for two reasons. The first source of inefficiency is due to the fact that at its optimum output, the firm charges a price that exceeds marginal costs. The monopolistic competitive firm maximizes profits where marginal revenue equals marginal cost. A monopolistic competitive firm’s demand curve is downward sloping, which means it will charge a price that exceeds marginal costs. The market power possessed by a monopolistic competitive firm means that at its profit maximizing level of production there will be a net loss of consumer and producer surplus.
The second source of inefficiency is the fact that these firms operate with excess capacity. The firm’s profit maximizing output is less than the output associated with minimum average cost. All firms, regardless of the type of market it operates in, will produce to a point where demand or price equals average cost. In a perfectly competitive market, this occurs where the perfectly elastic demand curve equals minimum average cost. In a monopolistic competitive market, the demand curve is downward sloping. In the long run, this leads to excess capacity.
Product Differentiation
Product differentiation is the process of distinguishing a product or service from others to make it more attractive to a target market.
learning objectives
- Define product differentiation
One of the defining traits of a monopolistically competitive market is that there is a significant amount of non- price competition. This means that product differentiation is key for any monopolistically competitive firm. Product differentiation is the process of distinguishing a product or service from others to make it more attractive to a target market.
Kool-Aid : Kool-Aid is an individual brand that competes with Kraft’s other brand (Tang).
Although research in a niche market may result in changing a product in order to improve differentiation, the changes themselves are not differentiation. Marketing or product differentiation is the process of describing the differences between products or services, or the resulting list of differences; differentiation is not the process of creating the differences between the products. Product differentiation is done in order to demonstrate the unique aspects of a firm’s product and to create a sense of value.
In economics, successful product differentiation is inconsistent with the conditions of perfect competition, which require products of competing firms to be perfect substitutes.
Consumers do not need to know everything about the product for differentiation to work. So long as the consumers perceive that there is a difference in the products, they do not need to know how or why one product might be of higher quality than another. For example, a generic brand of cereal might be exactly the same as a brand name in terms of quality. However, consumers might be willing to pay more for the brand name despite the fact that they cannot identify why the more expensive cereal is of higher “quality.”
There are three types of product differentiation:
- Simple: the products are differentiated based on a variety of characteristics;
- Horizontal: the products are differentiated based on a single characteristic, but consumers are not clear on which product is of higher quality; and
- Vertical: the products are differentiated based on a single characteristic and consumers are clear on which product is of higher quality.
Differentiation occurs because buyers perceive a difference. Drivers of differentiation include functional aspects of the product or service, how it is distributed and marketed, and who buys it. The major sources of product differentiation are as follows:
- Differences in quality, which are usually accompanied by differences in price;
- Differences in functional features or design;
- Ignorance of buyers regarding the essential characteristics and qualities of goods they are purchasing;
- Sales promotion activities of sellers, particularly advertising; and
- Differences in availability (e.g. timing and location).
The objective of differentiation is to develop a position that potential customers see as unique. Differentiation affects performance primarily by reducing direct competition. As the product becomes more different, categorization becomes more difficult, and the product draws fewer comparisons with its competition. A successful product differentiation strategy will move the product from competing on price to competing on non-price factors.
Demand Curve
The demand curve in a monopolistic competitive market slopes downward, which has several important implications for firms in this market.
learning objectives
- Explain how the shape of the demand curve affects the firms that exist in a market with monopolistic competition
The demand curve of a monopolistic competitive market slopes downward. This means that as price decreases, the quantity demanded for that good increases. While this appears to be relatively straightforward, the shape of the demand curve has several important implications for firms in a monopolistic competitive market.
Monopolistic Competition : As you can see from this chart, the demand curve (marked in red) slopes downward, signifying elastic demand.
Market Power
The demand curve for an individual firm is downward sloping in monopolistic competition, in contrast to perfect competition where the firm’s individual demand curve is perfectly elastic. This is due to the fact that firms have market power: they can raise prices without losing all of their customers. In this type of market, these firms have a limited ability to dictate the price of its products; a firm is a price setter not a price taker (at least to some degree). The source of the market power is that there are comparatively fewer competitors than in a competitive market, so businesses focus on product differentiation, or differences unrelated to price. By differentiating its products, firms in a monopolistically competitive market ensure that its products are imperfect substitutes for each other. As a result, a business that works on its branding can increase its prices without risking its consumer base.
Inefficiency in the Market
Monopolistically competitive firms maximize their profit when they produce at a level where its marginal costs equals its marginal revenues. Because the individual firm’s demand curve is downward sloping, reflecting market power, the price these firms will charge will exceed their marginal costs. Due to how products are priced in this market, consumer surplus decreases below the pareto optimal levels you would find in a perfectly competitive market, at least in the short run. As a result, the market will suffer deadweight loss. The suppliers in this market will also have excess production capacity.
Short Run Outcome of Monopolistic Competition
Monopolistic competitive markets can lead to significant profits in the short-run, but are inefficient.
learning objectives
- Examine the concept of the short run and how it applies to firms in a monopolistic competition
In terms of production and supply, the “short run” is the time period when one factor of production is fixed in terms of costs while the other elements of production are variable. The most common example of this is the production of a good that requires a factory. If demand spikes, in the short run you will only be able to produce the amount of good that the capacity of the factory allows. This is because it takes a significant amount of time to either build or acquire a new factory. If demand for the good plummets you can cut production in the factory, but will still have to pay the costs of maintaining the factory and the associated rent or debt associated with acquiring the factory. You could sell the factory, but again that would take a significant amount of time. The “short run” is defined by how long it would take to alter that “fixed” aspect of production.
In the short run, a monopolistically competitive market is inefficient. It does not achieve allocative nor productive efficiency. Also, since a monopolistic competitive firm has powers over the market that are similar to a monopoly, its profit maximizing level of production will result in a net loss of consumer and producer surplus, creating deadweight loss.
Setting a Price and Determining Profit
Like monopolies, the suppliers in monopolistic competitive markets are price makers and will behave similarly in the short-run. Also like a monopoly, a monopolistic competitive firm will maximize its profits by producing goods to the point where its marginal revenues equals its marginal costs. The profit maximizing price of the good will be determined based on where the profit-maximizing quantity amount falls on the average revenue curve. The profit the firm makes is the the amount of the good produced multiplied by the difference between the price minus the average cost of producing the good.
Short Run Equilibrium Under Monopolistic Competition : As you can see from the chart, the firm will produce the quantity (Qs) where the marginal cost (MC) curve intersects with the marginal revenue (MR) curve. The price is set based on where the Qs falls on the average revenue (AR) curve. The profit the firm makes in the short term is represented by the grey rectangle, or the quantity produced multiplied by the difference between the price and the average cost of producing the good.
Since monopolistically competitive firms have market power, they will produce less and charge more than a firm would under perfect competition. This causes deadweight loss for society, but, from the producer’s point of view, is desirable because it allows them to earn a profit and increase their producer surplus.
Because of the possibility of large profits in the short-run and relatively low barriers of entry in comparison to perfect markets, markets with monopolistic competition are very attractive to future entrants.
Long Run Outcome of Monopolistic Competition
In the long run, firms in monopolistic competitive markets are highly inefficient and can only break even.
learning objectives
- Explain the concept of the long run and how it applies to a firms in monopolistic competition
In terms of production and supply, the “long-run” is the time period when there is no factor that is fixed and all aspects of production are variable and can therefore be adjusted to meet shifts in demand. Given a long enough time period, a firm can take the following actions in response to shifts in demand:
- Enter an industry;
- Exit an industry;
- Increase its capacity to produce more; and
- Decrease its capacity to produce less.
In the long-run, a monopolistically competitive market is inefficient. It achieves neither allocative nor productive efficiency. Also, since a monopolistic competitive firm has power over the market that is similar to a monopoly, its profit maximizing level of production will result in a net loss of consumer and producer surplus.
Setting a Price and Determining Profit
Like monopolies, the suppliers in monopolistic competitive markets are price makers and will behave similarly in the long-run. Also like a monopoly, a monopolistic competitive firm will maximize its profits by producing goods to the point where its marginal revenues equals its marginal costs. The profit maximizing price of the good will be determined based on where the profit-maximizing quantity amount falls on the average revenue curve.
While a monopolistic competitive firm can make a profit in the short-run, the effect of its monopoly-like pricing will cause a decrease in demand in the long-run. This increases the need for firms to differentiate their products, leading to an increase in average total cost. The decrease in demand and increase in cost causes the long run average cost curve to become tangent to the demand curve at the good’s profit maximizing price. This means two things. First, that the firms in a monopolistic competitive market will produce a surplus in the long run. Second, the firm will only be able to break even in the long-run; it will not be able to earn an economic profit.
Long Run Equilibrium of Monopolistic Competition : In the long run, a firm in a monopolistic competitive market will product the amount of goods where the long run marginal cost (LRMC) curve intersects marginal revenue (MR). The price will be set where the quantity produced falls on the average revenue (AR) curve. The result is that in the long-term the firm will break even.
Monopolistic Competition Compared to Perfect Competition
The key difference between perfectly competitive markets and monopolistically competitive ones is efficiency.
learning objectives
- Differentiate between monopolistic competition and perfect competition
Perfect competition and monopolistic competition are two types of economic markets.
Similarities
One of the key similarities that perfectly competitive and monopolistically competitive markets share is elasticity of demand in the long-run. In both circumstances, the consumers are sensitive to price; if price goes up, demand for that product decreases. The two only differ in degree. Firm’s individual demand curves in perfectly competitive markets are perfectly elastic, which means that an incremental increase in price will cause demand for a product to vanish ). Demand curves in monopolistic competition are not perfectly elastic: due to the market power that firms have, they are able to raise prices without losing all of their customers.
Demand curve in a perfectly competitive market : This is the demand curve in a perfectly competitive market. Note how any increase in price would wipe out demand.
Also, in both sets of circumstances the suppliers cannot make a profit in the long-run. Ultimately, firms in both markets will only be able to break even by selling their goods and services.
Both markets are composed of firms seeking to maximize their profits. In both of these markets, profit maximization occurs when a firm produces goods to such a level so that its marginal costs of production equals its marginal revenues.
Differences
One key difference between these two set of economic circumstances is efficiency.  This means that the price is Pareto optimal, which means that any shift in the price would benefit one party at the expense of the other. The overall economic surplus, which is the sum of the producer and consumer surpluses, is maximized. The suppliers cannot influence the price of the good or service in question; the market dictates the price. The price of the good or service in a perfectly competitive market is equal to the marginal costs of manufacturing that good or service.
In a monopolistically competitive market the price is higher than the marginal cost of producing the good or service and the suppliers can influence the price, granting them market power. This decreases the consumer surplus, and by extension the market’s economic surplus, and creates deadweight loss.
Another key difference between the two is product differentiation. In a perfectly competitive market products are perfect substitutes for each other. But in monopolistically competitive markets the products are highly differentiated. In fact, firms work hard to emphasize the non-price related differences between their products and their competitors’.
A final difference involves barriers to entry and exit. Perfectly competitive markets have no barriers to entry and exit; a firm can freely enter or leave an industry based on its perception of the market’s profitability. In a monopolistic competitive market there are few barriers to entry and exit, but still more than in a perfectly competitive market.
Efficiency of Monopolistic Competition
Monopolistic competitive markets are never efficient in any economic sense of the term.
learning objectives
- Discuss the effect monopolistic competition has on overall market efficiency
Monopolistically competitive markets are less efficient than perfectly competitive markets.
Producer and Consumer Surplus
In terms of economic efficiency, firms that are in monopolistically competitive markets behave similarly as monopolistic firms. Both types of firms’ profit maximizing production levels occur when their marginal revenues equals their marginal costs. This quantity is less than what would be produced in a perfectly competitive market. It also means that producers will supply goods below their manufacturing capacity.
Firms in a monopolistically competitive market are price setters, meaning they get to unilaterally charge whatever they want for their goods without being influenced by market forces. In these types of markets, the price that will maximize their profit is set where the profit maximizing production level falls on the demand curve.This price exceeds the firm’s marginal costs and is higher than what the firm would charge if the market was perfectly competitive. This means two things:
- Consumers will have to pay a higher price than they would in a perfectly competitive market, leading to a significant decline in consumer surplus; and
- Producers will sell less of their goods than they would have in a perfectly competitive market, which could offset their gains from charging a higher price and could result in a decline in producer surplus.
Regardless of whether there is a decline in producer surplus, the loss in consumer surplus due to monopolistic competition guarantees deadweight loss and an overall loss in economic surplus.
Inefficiency in Monopolistic Competition : Monopolistic competition creates deadweight loss and inefficiency, as represented by the yellow triangle. The quantity is produced when marginal revenue equals marginal cost, or where the green and blue lines intersect. The price is determined based on where the quantity falls on the demand curve, or the red line. In the short run, the monopolistic competition market acts like a monopoly.
Productive and Allocative Efficiency
Productive efficiency occurs when a market is using all of its resources efficiently. This occurs when a product’s price is set at its marginal cost, which also equals the product’s average total cost. In a monopolistic competitive market, firms always set the price greater than their marginal costs, which means the market can never be productively efficient.
Allocative efficiency occurs when a good is produced at a level that maximizes social welfare. This occurs when a product’s price equals its marginal benefits, which is also equal to the product’s marginal costs. Again, since a good’s price in a monopolistic competitive market always exceeds its marginal cost, the market can never be allocatively efficient.
Advertising and Brand Management in Monopolistic Competition
Advertising and branding help firms in monopolistic competitive markets differentiate their products from those of their competitors.
learning objectives
- Evaluate whether advertising is beneficial or detrimental to consumers
One of the characteristics of a monopolistic competitive market is that each firm must differentiate its products. Two ways to do this is through advertising and cultivating a brand. Advertising is a form of communication meant to inform, educate, and influence potential customers about products and services. Advertising is generally used by businesses to cultivate a brand. A brand is a company’s reputation in relation to products or services sold under a specific name or logo.
Listerine advertisement, 1932 : From 1921 until the mid-1970s, Listerine was also marketed as preventive and a remedy for colds and sore throats. In 1976, the Federal Trade Commission ruled that these claims were misleading, and that Listerine had “no efficacy” at either preventing or alleviating the symptoms of sore throats and colds. Warner-Lambert was ordered to stop making the claims and to include in the next $10.2 million dollars of Listerine ads specific mention that “contrary to prior advertising, Listerine will not help prevent colds or sore throats or lessen their severity. “
Benefits of Advertising and Branding
The purpose of the brand is to generate an immediate positive reaction from consumers when they see a product or service being sold under a certain name in order to increase sales. A brand and the associated reputation are built on advertising and consumers’ past experiences with the products associated with that brand.
Reputation among consumers is important to a monopolistically competitive firm because it is arguably the best way to differentiate itself from its competitors. However, for that reputation to be maintained, the firm must ensure that the products associated with the brand name are of the highest quality. This standard of quality must be maintained at all times because it only takes one bad experience to ruin the value of the brand for a segment of consumers. Brands and advertising can thus help guarantee quality products for consumers and society at large.
Advertising is also valuable to society because it helps inform consumers. Markets work best when consumers are well informed, and advertising provides that information. Advertising and brands can help minimize the costs of choosing between different products because of consumers’ familiarity with the firms and their quality.
Finally, advertising allows new firms to enter into a market. Consumers might be hesitant to purchase products with which they are unfamiliar. Advertising can educate and inform those consumers, making them comfortable enough to give those products a try.
Costs of Advertising and Branding
There are some concerns about how advertising can harm consumers and society as well. Some believe that advertising and branding induces customers to spend more on products because of the name associated with them rather than because of rational factors. Further, there is no guarantee that advertisements accurately describe products; they can mislead consumers. Finally, advertising can have negative societal effects such as the perpetuation of negative stereotypes or the nuisance of “spam. ”
Key Points
- Monopolistic competition is different from a monopoly. A monopoly exists when a person or entity is the exclusive supplier of a good or service in a market.
- Markets that have monopolistic competition are inefficient for two reasons. First, at its optimum output the firm charges a price that exceeds marginal costs. The second source of inefficiency is the fact that these firms operate with excess capacity.
- Monopolistic competitive markets have highly differentiated products; have many firms providing the good or service; firms can freely enter and exits in the long-run; firms can make decisions independently; there is some degree of market power; and buyers and sellers have imperfect information.
- Differentiation occurs because buyers perceive a difference between products. Causes of differentiation include functional aspects of the product or service, how it is distributed and marketed, and who buys it.
- Differentiation affects performance primarily by reducing direct competition. As the product becomes more different, categorization becomes more difficult, and the product draws fewer comparisons with its competition.
- There are three types of product differentiation: simple, horizontal, and vertical.
- The “short run” is the time period when one factor of production is fixed in terms of costs, while the other elements of production are variable.
- Like monopolies, the suppliers in monopolistic competitive markets are price makers and will behave similarly in the short-run.
- Also like a monopoly, a monopolastic competitive firm will maximize its profits when its marginal revenues equals its marginal costs.
- In terms of production and supply, the ” long-run ” is the time period when all aspects of production are variable and can therefore be adjusted to meet shifts in demand.
- Like monopolies, the suppliers in monopolistic competitive markets are price makers and will behave similarly in the long-run.
- Like a monopoly, a monopolastic competitive firm will maximize its profits by producing goods to the point where its marginal revenues equals its marginal costs.
- In the long-run, the demand curve of a firm in a monopolistic competitive market will shift so that it is tangent to the firm’s average total cost curve. As a result, this will make it impossible for the firm to make economic profit; it will only be able to break even.
- Perfectly competitive markets have no barriers of entry or exit. Monopolistically competitive markets have a few barriers of entry and exit.
- The two markets are similar in terms of elasticity of demand, a firm ‘s ability to make profits in the long-run, and how to determine a firm’s profit maximizing quantity condition.
- In a perfectly competitive market, all goods are substitutes. In a monopolistically competitive market, there is a high degree of product differentiation.
- Because a good is always priced higher than its marginal cost, a monopolistically competitive market can never achieve productive or allocative efficiency.
- Suppliers in monopolistically competitive firms will produce below their capacity.
- Because monopolistic firms set prices higher than marginal costs, consumer surplus is significantly less than it would be in a perfectly competitive market. This leads to deadweight loss and an overall decrease in economic surplus.
- A company’s brand can help promote quality in that company’s products.
- Advertising helps inform consumers about products, which decreases selection costs.
- Costs associated with advertising and branding include higher prices, customers mislead by false advertisements, and negative societal affects such as perpetuating stereotypes and spam.
Key Terms
- monopoly : A market where one company is the sole supplier.
- Monopolistic competition : A type of imperfect competition such that one or two producers sell products that are differentiated from one another as goods but not perfect substitutes (such as from branding, quality, or location).
- product differentiation : Perceived differences between the product of one firm and that of its rivals so that some customers value it more.
- short-run : The conceptual time period in which at least one factor of production is fixed in amount and others are variable in amount.
- long-run : The conceptual time period in which there are no fixed factors of production.
- perfect competition : A type of market with many consumers and producers, all of whom are price takers
- consumer surplus : The difference between the maximum price a consumer is willing to pay and the actual price they do pay.
- producer surplus : The amount that producers benefit by selling at a market price that is higher than the lowest price at which they would be willing to sell.
- brand : The reputation of an organization, a product, or a person among some segment of the population.
- advertising : Communication with the purpose of influencing potential customers about products and services
LICENSES AND ATTRIBUTIONS
CC LICENSED CONTENT, SPECIFIC ATTRIBUTION
- Monopolistic competition. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Monopol...23Inefficiency . License : CC BY-SA: Attribution-ShareAlike
- IB Economics/Microeconomics/Theory of the Firm (HL). Provided by : Wikibooks. Located at : en.wikibooks.org/wiki/IB_Econ...ic_Competition . License : CC BY-SA: Attribution-ShareAlike
- Monopolistic competition. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Monopolistic_competition . License : CC BY-SA: Attribution-ShareAlike
- Monopoly. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Monopoly . License : CC BY-SA: Attribution-ShareAlike
- Monopolistic competition. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Monopol...23Inefficiency . License : CC BY-SA: Attribution-ShareAlike
- Monopolistic competition. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Monopol...%20competition . License : CC BY-SA: Attribution-ShareAlike
- Boundless. Provided by : Boundless Learning. Located at : www.boundless.com//economics/...ition/monopoly . License : CC BY-SA: Attribution-ShareAlike
- Provided by : Wikimedia. Located at : upload.wikimedia.org/wikipedi...thes_Racks.jpg . License : CC BY: Attribution
- Monopolistic competition. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Monopol...ifferentiation . License : CC BY-SA: Attribution-ShareAlike
- Product differentiation. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Product_differentiation . License : CC BY-SA: Attribution-ShareAlike
- product differentiation. Provided by : Wiktionary. Located at : en.wiktionary.org/wiki/product_differentiation . License : CC BY-SA: Attribution-ShareAlike
- Provided by : Wikimedia. Located at : upload.wikimedia.org/wikipedi...thes_Racks.jpg . License : CC BY: Attribution
- Kool-Aid. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Kool-Aid . License : Public Domain: No Known Copyright
- Elasticity of demand. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Elasticity_of_demand . License : CC BY-SA: Attribution-ShareAlike
- Monopolistic competition. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Monopolistic_competition . License : CC BY-SA: Attribution-ShareAlike
- elastic. Provided by : Wiktionary. Located at : en.wiktionary.org/wiki/elastic . License : CC BY-SA: Attribution-ShareAlike
- market power. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/market%20power . License : CC BY-SA: Attribution-ShareAlike
- Provided by : Wikimedia. Located at : upload.wikimedia.org/wikipedi...thes_Racks.jpg . License : CC BY: Attribution
- Kool-Aid. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Kool-Aid . License : Public Domain: No Known Copyright
- Monopoly-surpluses. Provided by : Wikimedia. Located at : commons.wikimedia.org/wiki/Fi...-surpluses.svg . License : Public Domain: No Known Copyright
- Long run. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Long_run%23Short_run . License : CC BY-SA: Attribution-ShareAlike
- IB Economics/Microeconomics/Theory of the Firm (HL). Provided by : Wikibooks. Located at : en.wikibooks.org/wiki/IB_Econ...ic_Competition . License : CC BY-SA: Attribution-ShareAlike
- Boundless. Provided by : Boundless Learning. Located at : www.boundless.com//economics/...tion/short-run . License : CC BY-SA: Attribution-ShareAlike
- Provided by : Wikimedia. Located at : upload.wikimedia.org/wikipedi...thes_Racks.jpg . License : CC BY: Attribution
- Kool-Aid. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Kool-Aid . License : Public Domain: No Known Copyright
- Monopoly-surpluses. Provided by : Wikimedia. Located at : commons.wikimedia.org/wiki/Fi...-surpluses.svg . License : Public Domain: No Known Copyright
- Short-run equilibrium of the firm under monopolistic competition. Provided by : Wikimedia. Located at : commons.wikimedia.org/wiki/Fi...ompetition.JPG . License : Public Domain: No Known Copyright
- Long run. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Long_run . License : CC BY-SA: Attribution-ShareAlike
- Monopolistic competition. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Monopolistic_competition . License : CC BY-SA: Attribution-ShareAlike
- Long run. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Long_run . License : CC BY-SA: Attribution-ShareAlike
- long-run. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/long-run . License : CC BY-SA: Attribution-ShareAlike
- Provided by : Wikimedia. Located at : upload.wikimedia.org/wikipedi...thes_Racks.jpg . License : CC BY: Attribution
- Kool-Aid. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Kool-Aid . License : Public Domain: No Known Copyright
- Monopoly-surpluses. Provided by : Wikimedia. Located at : commons.wikimedia.org/wiki/Fi...-surpluses.svg . License : Public Domain: No Known Copyright
- Short-run equilibrium of the firm under monopolistic competition. Provided by : Wikimedia. Located at : commons.wikimedia.org/wiki/Fi...ompetition.JPG . License : Public Domain: No Known Copyright
- Long-run equilibrium of the firm under monopolistic competition. Provided by : Wikimedia. Located at : commons.wikimedia.org/wiki/Fi...ompetition.JPG . License : Public Domain: No Known Copyright
- Perfect competition. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Perfect_competition . License : CC BY-SA: Attribution-ShareAlike
- Monopolistic competition. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Monopolistic_competition . License : CC BY-SA: Attribution-ShareAlike
- Boundless. Provided by : Boundless Learning. Located at : www.boundless.com//economics/...ct-competition . License : CC BY-SA: Attribution-ShareAlike
- Provided by : Wikimedia. Located at : upload.wikimedia.org/wikipedi...thes_Racks.jpg . License : CC BY: Attribution
- Kool-Aid. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Kool-Aid . License : Public Domain: No Known Copyright
- Monopoly-surpluses. Provided by : Wikimedia. Located at : commons.wikimedia.org/wiki/Fi...-surpluses.svg . License : Public Domain: No Known Copyright
- Short-run equilibrium of the firm under monopolistic competition. Provided by : Wikimedia. Located at : commons.wikimedia.org/wiki/Fi...ompetition.JPG . License : Public Domain: No Known Copyright
- Long-run equilibrium of the firm under monopolistic competition. Provided by : Wikimedia. Located at : commons.wikimedia.org/wiki/Fi...ompetition.JPG . License : Public Domain: No Known Copyright
- Elasticity-elastic. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/File:El...ty-elastic.png . License : Public Domain: No Known Copyright
- Allocative efficiency. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Allocative_efficiency . License : CC BY-SA: Attribution-ShareAlike
- Productive efficiency. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Productive_efficiency . License : CC BY-SA: Attribution-ShareAlike
- Monopolistic competition. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Monopol...23Inefficiency . License : CC BY-SA: Attribution-ShareAlike
- consumer surplus. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/consumer%20surplus . License : CC BY-SA: Attribution-ShareAlike
- producer surplus. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/producer%20surplus . License : CC BY-SA: Attribution-ShareAlike
- Provided by : Wikimedia. Located at : upload.wikimedia.org/wikipedi...thes_Racks.jpg . License : CC BY: Attribution
- Kool-Aid. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Kool-Aid . License : Public Domain: No Known Copyright
- Monopoly-surpluses. Provided by : Wikimedia. Located at : commons.wikimedia.org/wiki/Fi...-surpluses.svg . License : Public Domain: No Known Copyright
- Short-run equilibrium of the firm under monopolistic competition. Provided by : Wikimedia. Located at : commons.wikimedia.org/wiki/Fi...ompetition.JPG . License : Public Domain: No Known Copyright
- Long-run equilibrium of the firm under monopolistic competition. Provided by : Wikimedia. Located at : commons.wikimedia.org/wiki/Fi...ompetition.JPG . License : Public Domain: No Known Copyright
- Elasticity-elastic. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/File:El...ty-elastic.png . License : Public Domain: No Known Copyright
- Monopoly-surpluses. Provided by : Wikimedia. Located at : commons.wikimedia.org/wiki/Fi...-surpluses.svg . License : Public Domain: No Known Copyright
- Advertising. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Advertising . License : CC BY-SA: Attribution-ShareAlike
- Advertising. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Advertising . License : CC BY-SA: Attribution-ShareAlike
- Monopolistic competition. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Monopol...ifferentiation . License : CC BY-SA: Attribution-ShareAlike
- Brand. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Brand . License : CC BY-SA: Attribution-ShareAlike
- brand. Provided by : Wiktionary. Located at : en.wiktionary.org/wiki/brand . License : CC BY-SA: Attribution-ShareAlike
- advertising. Provided by : Wiktionary. Located at : en.wiktionary.org/wiki/advertising . License : CC BY-SA: Attribution-ShareAlike
- Provided by : Wikimedia. Located at : upload.wikimedia.org/wikipedi...thes_Racks.jpg . License : CC BY: Attribution
- Kool-Aid. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/Kool-Aid . License : Public Domain: No Known Copyright
- Monopoly-surpluses. Provided by : Wikimedia. Located at : commons.wikimedia.org/wiki/Fi...-surpluses.svg . License : Public Domain: No Known Copyright
- Short-run equilibrium of the firm under monopolistic competition. Provided by : Wikimedia. Located at : commons.wikimedia.org/wiki/Fi...ompetition.JPG . License : Public Domain: No Known Copyright
- Long-run equilibrium of the firm under monopolistic competition. Provided by : Wikimedia. Located at : commons.wikimedia.org/wiki/Fi...ompetition.JPG . License : Public Domain: No Known Copyright
- Elasticity-elastic. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/File:El...ty-elastic.png . License : Public Domain: No Known Copyright
- Monopoly-surpluses. Provided by : Wikimedia. Located at : commons.wikimedia.org/wiki/Fi...-surpluses.svg . License : Public Domain: No Known Copyright
- Listerine advertisement, 1932. Provided by : Wikipedia. Located at : en.Wikipedia.org/wiki/File:Li...ment,_1932.jpg . License : CC BY: Attribution


7.7: Take effective notes on online readings
Why take notes on online content? After all, you can easily search for it and read it again. However, re-reading is not always the most effective use of time. Taking good notes helps you to quickly review the key points in the material that you have read.
Taking notes is also an effective learning strategy. Intentionally annotating the texts that you read requires you to critically engage with the material. You are doing the work of identifying the important content, and considering its implications for your course and your professional practice. This practice facilitates deep learning, and ensures that you remember key material.
Choose the note taking method that is most effective for you. You may prefer traditional notebooks. Many readers underline, highlight, and put key notes in the margins of their books. You may prefer to create typewritten notes, and to store these notes in using your electronic notebook/ information management system. Another tool for engaging with digital texts is Hypothes.is. Watch the video below, and consider how this tool might work for you. If you prefer reading to watching videos, scroll to the bottom of the page for a transcript. When you are finished, go to the next chapter to move on.
Video Transcript
So, you have your texts for your course – but they’re not regular textbooks. You’ll be using online texts and other articles as the primary readings in your course. What strategies can you use for making effective notes that will help you retain what you are reading, prepare for exams, and note key information for use in your assignments?
One tool that can help you take notes electronically is Hypothesis. Hypothesis is a free tool that you add to the Chrome browse that allows you to highlight and add notes to online text. In this video, you will learn how to install Hypothesis, create notes and highlights, and create a group to work collaboratively with your classmates.
To get started with Hypothesis, you will first create a free account. Type hypothes.is into the search bar to visit the page. On the top right, you will find a “Get Started” button. Click here to create your account. You will provide your email address, create a user name, and password. Then, check your email and click on the link to activate your account.
The second step is to install the Hypothesis extension in your web browser. In this case, you will use the Chrome browser. To install the extension, go to the “Get Started” section of the Hypothesis page. Then, click the Chrome extension button. This will guide you through the steps of installing the extension.
When the extension is installed, you will see a square icon at the top left of your screen. When you click this icon, you will see a new menu on the far right of your browser. Click the arrow to open the menu and login.
Next, you will choose where to store your notes. Be aware that the default setting is public. You will likely want to create a private group for personal notes or group projects. To create a group, click on Public, and then create a new private group. For each text you highlight, you can choose which group can see your notes. This feature can be especially helpful for group study and projects. You may also wish to create a group that only you can see to store personal notes.
Now, begin reading and taking notes. Today I’m going to read and take notes on this chapter on procrastination from an online text.
When I highlight some text, I have the option to highlight or annotate the text. When you click on highlight, the text is marked with a yellow highlight, as you might expect. This can be helpful in identifying key points in the document. However, be careful not to over-highlight – be very selective in highlighting only key information.
I assumed that procrastination was always a time management problem. What might be a different reason that I procrastinate?
Finally, I can choose to add a page note that summarizes my key learnings or questions, or indicates how I might use this information in the future. As I read this page, I found the information on the Pomodoro technique useful. If I was reading this text together with a group of classmates, I might add something like this to the notes:
I found the Pomodoro technique interesting – has anyone else used this method successfully?
My group members can then respond with their own insights.
Reading purposefully requires you to actively interact with texts. In this video, you learned how to use Hypothesis as a tool for engaging with online texts. You learned how to create an account, install the extension, and use the basic highlighting and annotation tools.
How might you use Hypothesis to support the reading in your courses?