04-25-2015, 10:22 AM
Monopolistic Competition (एकाधिकार प्रतियोगिता)
Monopolistic competition is a market situation, in which many firms compete with each other to sell their closely related differentiated products. Monopolistic competition is a middle condition of market between monopoly, on the one hand, and perfect competition (a purely theoretical state), on the other, and combines elements of each. Monopolistic competition is a form of imperfect competition and can be found in many real world markets ranging from clusters of sandwich bars, other fast food shops and coffee stores in a busy town centre to pizza delivery businesses in a city or hairdressers in a local area. As in a monopoly, firms in monopolistic competition are price setters, rather than price takers.
Features of monopolistic Competition
1.Large Number of Firms and Buyers
2.Product Differentiation
3.Freedom of Entry and Exit of Firms
4.Selling Cost
5. Non-Price Competition
Monopolistic competition is a market situation, in which many firms compete with each other to sell their closely related differentiated products. Monopolistic competition is a middle condition of market between monopoly, on the one hand, and perfect competition (a purely theoretical state), on the other, and combines elements of each. Monopolistic competition is a form of imperfect competition and can be found in many real world markets ranging from clusters of sandwich bars, other fast food shops and coffee stores in a busy town centre to pizza delivery businesses in a city or hairdressers in a local area. As in a monopoly, firms in monopolistic competition are price setters, rather than price takers.
Features of monopolistic Competition
1.Large Number of Firms and Buyers
2.Product Differentiation
3.Freedom of Entry and Exit of Firms
4.Selling Cost
5. Non-Price Competition