What are the characteristics of monopolistic competition?

      

What are the characteristics of monopolistic competition?

  

Answers


John
1. There are many buyers and many sellers in the market.
2. A firm has a certain monopoly power over its own brand.
3. Each producer sells a brand which is slight different from his competitor's product but if no difference he Will differentiate through packaging and advertisement.
4. There are no barriers or low barriers to entry as they do require a large scale capital investment.
5. Firms are price makers since they can rise prices without losing all their customers.
Jonmhumble answered the question on October 24, 2017 at 08:07


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