What is Monopolistic Competition? Can a seller in such a market influence the price? Explain.
What is Monopolistic Competition? Can a seller in such a market influence the price? Explain.
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Monopolistic Competition is found in the industry where there is a large number of sellers selling differentiated product to a large number of buyers. There is freedom of entry and exit for the firms.
In such a market, a seller has a partial control over price through product differentiation. However, full control over price is not possible owing to the fact that there is a large number of close substitutes in the mark.
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