BRIEF INTRODUCTION ON MONOPOLISTIC COMPETITION MARKET

MONOPOLISTIC COMPETITION MARKET

The monopolistic competition is also called as imperfect competition because this market structure lies between the pure monopoly and the pure competition.

IN this market , there are a large number of firms that produce differentiated products which are close substitutes for each other.

FEATURES ARE:

                        1. Product Differentiation

                        2. Large number of firms

                        3. Free Entry and Exit

                        4. Heavy expenditure on Advertisement and other Selling Costs

                        5.  Product Variation

EXAMPLES: 

                 1. CLOTHING SHOPS

                 2. GAS STATION

                 3. GROCERY STORES 

                 4. ATHLETIC WEAR

                 5. FAST FOOD RESTAURENT

                 6. BUSINESS SUPPLY STORES

                 7. HOME SUPPLY STORES 

                 8. PET FOODS