Thursday, July 19, 2012

U.S. Business System & Environment | Monopolistic Competition


Describe monopolistic competition.
























Answer:  In a market characterized by monopolistic competition, there are fewer sellers than in perfect competition. Sellers will attempt to differentiate their product from those of their competitors. Product differentiation gives sellers some control over prices. Monopolistically competitive businesses can be large or small and can enter and exit the market easily.

Source: Business Essentials, 8e (Ebert/Griffin) – Global Edition

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