Which characteristics of firms selling designer clothing are monopolistic which are competitive?

Answer 1

Firms selling designer clothing often exhibit monopolistic characteristics through brand differentiation, as they create unique products that cater to specific consumer preferences and build strong brand loyalty. This allows them to set higher prices than competitors without losing all their customers. However, these firms also operate in a competitive environment since there are numerous designers and brands vying for market share, leading to price competition and the need for continuous innovation. Ultimately, the balance between brand uniqueness and the presence of alternative options characterizes the market dynamics for designer clothing.