Reading the market conditions under which monopolistic competition exists, identify one or two industry examples in...
Reading the market conditions under which monopolistic competition exists, identify one or two industry examples in the real-world business operations in which a firm is considered to be monopolistically competitive entity.
Homework Answers
Features of monopolistically competitive market :
Many sellers and buyers , each firm produces slightly differentiated products , close substitutes available , non-price competition , easy entry and exit of firms in the market .
Industry examples : Restaurant industry ( each hotel or restaurant having slightly differentiated menu , many close substitutes , advertisement competition , easy entry )
FMCG market ( fast moving consumer goods like soaps , beverages , packaged food etc ) , many companies produce similar products .
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