Asked by Songqing Jiang on May 23, 2024
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Monopolistic competition is characterized by many buyers and sellers, product differentiation, and barriers to entry.
Monopolistic Competition
refers to a market structure where many firms sell products that are similar but not identical, each having some control over its price.
Product Differentiation
The process of distinguishing a product or service from others, to make it more attractive to a particular target market.
Barriers to Entry
Factors that make it difficult for new firms to enter an industry, such as high startup costs or strict regulations.
- Understand the characteristics of monopolistically competitive markets, including many buyers and sellers, product differentiation, and free entry.
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Learning Objectives
- Understand the characteristics of monopolistically competitive markets, including many buyers and sellers, product differentiation, and free entry.
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