stage of transition to monopolistic competition

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Therefore, the raw material prices have a greater impact on home improvement enterprises. Only from the cost point of view, if the home improvement business to ensure that 10% -20% of the gross margin, it is bound to improve the decoration prices. If the Beijing decoration industry in the near future to reach a "cartel" price alliance,
in a certain period of time will be able to ease the trend of shrinkage of the decoration industry, to a certain extent, to protect the interests of the industry. But because this is a self-discipline price, in fact, there is no mandatory effect, the price will be very great flexibility, as long as one of the members to reduce or disguise lower prices,
will benefit from it. In order to pursue the interests of the alliance members of the price battle between the inevitable, which will inevitably lead to "cartel" mechanism of the collapse. At present, Beijing decoration industry is in full competition to the stage of transition to monopolistic competition, the emergence of a large number of expert consumers,
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