In monopolistic market firms produce large number of products that are closely substitute of each other.
Features:
1. Product differentiation- the firm produces goods that are not exactly same but identical to each other.
2. Large number of firms: there are large no. of firms which compete with each other. Every firm tries hard to make it's profupr stand out.
3. Free entry and exit: firms are free to enter the market and leave if they are not able to withstand stiff competition. To survive the competition firms produces different varieties of good.
4. Control over price : firms have little control over price because one product of firm is closely related to another firms's product. Law of demand works in this market.
Features:
1. Product differentiation- the firm produces goods that are not exactly same but identical to each other.
2. Large number of firms: there are large no. of firms which compete with each other. Every firm tries hard to make it's profupr stand out.
3. Free entry and exit: firms are free to enter the market and leave if they are not able to withstand stiff competition. To survive the competition firms produces different varieties of good.
4. Control over price : firms have little control over price because one product of firm is closely related to another firms's product. Law of demand works in this market.
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