Monopolistic Competition Homework Help
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This imperfect competition, known as monopolistic competition, occurs among a number of competitors who aim towards attracting same customers. They are however each other’s close substitute even though each firm offers slightly different and unique service.
As for instance, hotels offer different delicacies with special uniqueness to draw almost same customers. A guest decides on which hotel to choose depending on the type of service and product they offer. Need more examples and case studies? Avail our monopolistic competition assignment help at helpmeinhomework.
Let’s take a look at the features;
- Each firm offers slightly different product from each other.
- As each firm delivers different product, so their prices also vary accordingly based on production cost, its market and the quality of product.
- Entrepreneur has a vital role in wise decision making to avoid market risks.
- There are hardly any barriers to enter or exit. So, firms are free to leave or enter the market at their own
- Because of absence of barrier, there are many such firms in the market.
- This type of market structure is high profit maximisers as the management actively works to business growth.
Monopolistic competition homework help team also has such entrepreneurs who have faced the challenges of reality in building up their business. They will share their experiences with you to make you aware of what exactly happens practically.
The categories of product differentiation:
- Physical differentiation
- Human capital differentiation
- Marketing differentiation
- Distribution differentiation
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Want to know the cons?
- There are unnecessary wastages of resources like an advertisement, excessive packaging, decorations, etc.
- In both long and short run, allocative inefficiency prevails due to price above marginal cost.
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