The following are the characteristics of Monopolistic Competition:
1. Large Number of Sellers
There are large number of sellers producing differentiated products. So, competition among them is very keen. Since number of sellers is large, each seller produces a very small part of market supply. So no seller is in a position to control price of product. Every firm is limited in its size.
2. Product Differentiation
A central feature of monopolistic competition is that products are differentiated. There are four main types of differentiation:
3. Freedom of Entry and Exit
This feature leads to stiff competition in market. Free entry into the market enables new firms to come with close substitutes. Free entry or exit maintains normal profit in the market for a longer span of time.
4. Selling Cost
It is a unique feature of monopolistic competition. In such type of market, due to product differentiation, every firm has to incur some additional expenditure in the form of selling cost. This cost includes sales promotion expenses, advertisement expenses, salaries of marketing staff, etc.
5. Absence of Interdependence
Large numbers of firms are different in their size. Each firm has its own production and marketing policy. So no firm is influenced by other firm. All are independent. Each firm makes independent decisions about price and output, based on its product, its market, and its costs of production.
6. Two Dimensional Competition
Monopolistic competition has two types of competition aspects viz.
Price competition i.e. firms compete with each other on the basis of price.
Non price competition i.e. firms compete on the basis of brand, product quality advertisement.
7. Concept of Group
In place of Marshallian concept of industry, Chamberlin introduced the concept of Group under monopolistic competition. An industry means a number of firms producing identical product. A group means a number of firms producing differentiated products which are closely related.
8. Falling Demand Curve
Firms are price makers and are faced with a downward sloping demand curve. Because each firm makes a unique product, it can charge a higher or lower price than its rivals. The firm can set its own price and does not have to 'take' it from the industry as a whole, though the industry price may be a guideline, or becomes a constraint. This also means that the demand curve will slope downwards.
1. Many sellers and buyers in the group. 2. Products of the sellers are differentiated but highly substitutes. 3. There is free entry and exit of firms in the group. 4. The goal of the firm is profit maximisation both in the short run and in the long run. 5. Price of factors and technology are given.
Many sellers: There are many firms competing for the same group of customers.
Product differentiation: Each firm produces a product that is at least slightly different from those of other firms. Thus, rather than being a price taker, each firm faces a downward sloping demand curve.
Free entry and exit: Firms can enter or exit the market without restriction. Thus, the number of firms in the market adjusts until economic profits are driven to zero.
Monopolistic competition involves several key components. Monopolistic competition involves one fir controlling the massive majority of the market but also allowing for profitable firms to compete directly on a smaller scale with the firms price on a similar product or service including commodity products such as oil.
price maker in the market, zero competition because there is one seller in the market and goods provided have no close substitute, lastly monopoly firm earns a supernormal profit
You go to jail
The names of the 3 Monopoly red properties are Indiana Avenue, Kentucky Avenue and Illinois Avenue.
it depends but it can be up to like 3 hours!!
If you want something entertaing for a short period of time Monopoly Express is better.If you want somethig that is longer , Monoploy. But you could play the original Monopoly on the Monopoly Express gameboard.
the economy Major of those four are the natural monopoly. geographic monopoly, govrnement monopoly. technological monopoly.
Monotony, Monopoly
It has abtuse angles and 3 triangles
You go to jail
Turkeys have a variety of attributes. Some of these include feathers, a red gobbler, as well as a bluish neck.
dark, morbid, just.
The names of the 3 Monopoly red properties are Indiana Avenue, Kentucky Avenue and Illinois Avenue.
There are many different types of Monopoly. I can name a few. : Monopoly Monopoly Spongebob Squarepants Edition Monopoly Disney Pixar Edition Monopoly Junior
Jane has a monopoly in that area. Mary has a monopoly of banks.
The top hat, the shoe, and the thimble.
yes
it depends but it can be up to like 3 hours!!
Different types of attributes in DBMS are:Key or non key attributesRequired or optional AttributesSimple or composite AttributesSingle-valued and multi-valued AttributesStored, Coded or derived Attributes