Monopolistic Competition
Monopolistic competition is a common market form. Many markets can be considered as monopolistically competitive, often including the markets for restaurants, cereal, clothing, shoes and service industries in large cities.
Monopolistic competition is a market structure which has got the characteristics of perfect competition and monopoly.
Monopolistic competition arises when firms produce similar goods and services but which appear different because of shape, labeling colour, design packaging, branding etc.
These aspects bring about artificial differences in products which are homogenous or close substitutes and satisfying the same needs. This is what is commonly called ‘Product differentiation'
Monopolistically competitive markets have the following characteristics:
Monopolistic competition is a market structure which has got the characteristics of perfect competition and monopoly.
Monopolistic competition arises when firms produce similar goods and services but which appear different because of shape, labeling colour, design packaging, branding etc.
These aspects bring about artificial differences in products which are homogenous or close substitutes and satisfying the same needs. This is what is commonly called ‘Product differentiation'
Monopolistically competitive markets have the following characteristics: