Monopolistic Competition Characteristics

Monopolistic competition refers to that market structure where many sellers are there who sell differentiated products and therefore have some monopoly when it comes to pricing of their products. Given below are some of the characteristics of monopolistic competition –

1. In monopolistic competition there are large numbers of independent sellers of the same product and therefore no single firm or a company can set the price of a product, which is the reason it is not same as monopoly.

2. In monopolistic competition each seller of a product sells differentiated product, which implies that each company’s product is different from other and therefore it is not same as that of perfect competition where all the producers sells the same good.

3. Due to differentiated product each seller has some control over the price which the seller can charge from its customers.

4. Marketing of a product or service assumes great importance under monopolistic competition as the sellers can sell the product to its customers by showing them the products differentiating characteristics.

5. Under monopolistic competition there are not many barriers to entry (which are present in monopoly) and therefore any company can enter the market and compete with other players in the market.

0 comments… add one

Leave a Comment

Related pages

what are durable and nondurable goodsexamples of vertical mergerprofitability ratios formulacommand economy disadvantagesindirect quotation examplesystematic risk and unsystematic risk pdfdefine dupont analysisclr and slradvantages and disadvantages of stock market investingcomplimentary goodscash flow statement in hindieconomics substitute goodsmarket based pricing advantages and disadvantagesadvantages of autocracyexample of unitary demandconglomerate integration examplessystematic and unsystematic risk exampleswhat is the difference between job costing and process costingadvantages and disadvantages of debit and credit cardsfeatures of socialist economic systempayback method of investment appraisalpayback period advantageswhat is a horizontal monopolydifference between a finance lease and an operating leaseconsignees definitionurbanization meaning in hindidisadvantages of jitdrawbacks of ratio analysisadvantages and disadvantages of lifo and fifosteps to withdraw money from atmdefine materiality in accountingunsystematic meaningadjusting entry for unearned revenuewhat are some characteristics of a traditional economyadvantages and disadvantages of loansexplain fifo methodcosts of deflationproblems of barter tradesundry assets definitioncost based pricing advantages and disadvantagesdefine crossed chequewhat are examples of current liabilitieswhat is sundry assetsmonopolistic competitionsunsystematic risksdemerits of international tradewhat are characteristics of a traditional economydisadvantages of acquisitionsexamples of complements economicswhat are derivative marketslong term sources of finance advantages and disadvantagesfull form fdiwhat is slr crrtypes of factoring methodsdifference between account payable and account receivablecash inflows examplesdifference between tax and tarifftypes of liquidity ratiowhat is fii and dii in share marketinferior goods definitionsubvention meaningexplain the barter systemdifference between tariffs and quotasdurable and nondurable goodswhat is unbilled revenuenormal and inferior goodswhat is substitute goods in economicsexample of inelastic goodshorizontal analysis definitionfactors affecting elasticityexample of nondurable goodsintermediate goods economics definition