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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