what is monopolistic competition
Monopolistic Competition
2. Product Differentiation: Each firm produces a product that is at least slightly different to that of the other firms. This will reduce the degree of substitutability and create an opening for brand loyalty.
3. Free Entry: Firms have the option of entering and exiting the market as they please without restriction.
Examples of monopolistic markets include: computer games, books and hotel accommodation.
- Monopolistic competition is a market structure in which many firms sell products that are similar but not identical to each other.
- Monopolistic Competition describes a market structure with the following characteristics:
2. Product Differentiation: Each firm produces a product that is at least slightly different to that of the other firms. This will reduce the degree of substitutability and create an opening for brand loyalty.
3. Free Entry: Firms have the option of entering and exiting the market as they please without restriction.
Examples of monopolistic markets include: computer games, books and hotel accommodation.