Monopolistic competition Flashcards
1
Q
What are the characteristics of monopolistic competition?
A
Many buyers and sellers
Perfect information
Slightly differentiated products
Very low barriers to entry and exit
2
Q
How is profit maximised in monopolistic competition?
A
Supernormal profits are made in the short run which would attract new supplier who offer new products and sp normal profit can only be made in the long run.
3
Q
What are some non-price competition methods?
A
Efficiency and use of online ordering
Making clothing available in a bigger range of sizes
Customisation of products
Return policies
Outlet shops
Effective use of social media
Taking steps to address corporate social responsibility