answersLogoWhite

0

Monopolistic competition is a market structure characterized by many firms that sell products that are similar but not identical, allowing for differentiation. In this environment, firms have some degree of market power, enabling them to set prices above marginal cost. Entry and exit in the market are relatively easy, leading to zero economic profit in the long run. Examples include restaurants and retail clothing stores, where each offers unique variations of a product.

User Avatar

AnswerBot

2w ago

What else can I help you with?

Related Questions

Is product of shampoo include in monopolistic or perfect competition?

Monopolistic Competition


Is Best Buy an oligopoly or monopolistic competition?

monopolistic competition


What is the explanation for the features of monopolistic competition?

Existence of large firms, no competition and influence over the prices are some of the characteristics of monopolistic competition.


Which is the main difference between perfect competition and monopolistic competition?

In monopolistic competition, sellers can profit from the differences between their products and other products.


Explain price determination under monopolistic competition?

My heartfelt apologies, I don't mean to be rude. But, is this a loaded question? If it is a monopoly, there's no competition. Therefore you can determine the price any way you want. {eijgniy: hey there is such a market called monopolistic competition.


What are the disadvantages of household in monopolistic competition?

The disadventages of this is that ... well it sucks muahhahaha Disadvantages of a household in monopolistic competition are that a monopolistic competition work as one big industy and no one can start there own bussinesses because they government will not allow it.


Why is monopolistic competition inefficient compared to perfect competition?

Monopolistic competition is inefficient compared to perfect competition because firms in monopolistic competition have some degree of market power, allowing them to set prices higher than in perfect competition. This leads to higher prices for consumers and less efficient allocation of resources. Additionally, firms in monopolistic competition may engage in non-price competition, such as advertising, which can further reduce efficiency.


What does monopolistic competition and perfect competition have in common?

they maximize profit


Types of Market Competition?

Perfect Competition, Monopoly, Monopolistic Competition or Oligopoly


What are three types of business competition?

Pure Competition Monopolistic Competition Oligopoly Monopoly


Why is restaurants a example of monopolistic competition?

xvdjxdgjxfdgjxgj


What is the market structure of Google?

monopolistic competition