Monopolistic Competition
Monopolistic Competition is when firms produce very similar products that can act as eachother's substitute. There are many firms that are made of this structure. Their products, while very similar, are distinguishable. This means you can tell that there is a difference in the products. The charactertistics that define monopolistic competition are:
- Made of many firms
- Different products
- Few barriers to entry into the business
- Heavy advertising
- Some price control