Monopolistic Market, to understand this term let us look what monopolistic mean - According to Collins english dictionary Monopolistic refers to business which tries to control as much of an industry as it can and does not allow fair competition.
Thus Monopolistic market is one in which:
>> large number of sellers same.
>> there is unrestricted freedom of entry.
>> these seller are producing close substitute of the product but not the same.There is product differentiation.
It is a condition of imperfect competition.
To discuss this now we are taking up the example of Maggi and Patanjali noodles in the market . if you take up the Maggi you can see that they are providing various options or product differentiation to its customers like providing variety of flavours , instant noodles etc.Patanjali Atta noodles came with the tag of ayurvedic , healthy and fresh .their major aim was to overtake maggi in the market .
although Maggi once enjoyed a Monopoly the recent issues revolving around adulteration gave a good opportunity for Patanjali and hence it lead to monopolistic Competition.
Thus Monopolistic market is one in which:
>> large number of sellers same.
>> there is unrestricted freedom of entry.
>> these seller are producing close substitute of the product but not the same.There is product differentiation.
It is a condition of imperfect competition.
To discuss this now we are taking up the example of Maggi and Patanjali noodles in the market . if you take up the Maggi you can see that they are providing various options or product differentiation to its customers like providing variety of flavours , instant noodles etc.Patanjali Atta noodles came with the tag of ayurvedic , healthy and fresh .their major aim was to overtake maggi in the market .
although Maggi once enjoyed a Monopoly the recent issues revolving around adulteration gave a good opportunity for Patanjali and hence it lead to monopolistic Competition.
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