MONOPOLISTIC COMPETITION

MONOPOLISTIC COMPETITION

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