Monopolistic Competition

Question 1

Monopolistic Competition

Answer 1

A market structure where a large number of small firms produces non-homogeneous goods and where there are no barriers to entry or exit

Question 2

Is monopolistic competition the same as perfect or imperfect competition?

Answer 2

Imperfect competition

This is because firms sell products which are not identical to the products of rival firms.

Question 3

Assumptions

Answer 3

Same as perfect competition, except firms produce differented or non-homogeneous goods.