Yr 2 Monopolistic comp

Question 1

what exactly is a monopolistic market?

Answer 1

Its a form of imperfect competition
regarded as a more ‘real world’ market structure
Competitive market with firms vying for customers
but some firms may have price-setting power

Question 2

Name a couple of assumptions about this market

Answer 2

Loads of firms with little market power
slightly differentiated products(can innovate new ones)
few barriers to enter/exit
price mainly dictated by market
Firms could advertise to generate loyalty, but at a local level.