State the distinct characteristics of Monopolistic Competition. While explaining the market structure with example of a product highlight the relevance of 'Selling Cost' from perspective of Producer and Customer.

State the distinct characteristics of Monopolistic Competition. While explaining the market structure with example of a product highlight the relevance of 'Selling Cost' from perspective of Producer and Customer.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 1QFR

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Definition Definition Form of market structure in which there are a large number of sellers of a particular product, with each seller selling somewhat differentiated but close substitutes to the product sold by other sellers. Features of monopolistic competition include: Large number of buyers and sellers Differentiated products Free entry and exit of the firms in the market

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