monopolistic competition

What is monopolistic competition?

• A type of market structure where many companies are present in an industry, and they produce similar but differentiated products.

• A type of market structure where many companies are present in an industry, and they produce the same exact products.

• The game monopoly

• When people make products that are not similar to one another.

what are the pros and cons of monopolistic competition?

• .

• It has none.

• It can lead to product differentiation and result in lower prices.

• it can lead to product differentiation and it can also result in higher prices.

How does monopolistic competition lead to market failure?

• It doesn't lead to failure, it is the best competition

• they limit efficiency, innovation, and healthy competition.

True or False?

Firms that earn economic profits in the short run commonly will find their profits competed away in the long run.

• True

• False

True or False? In a monopolistic competition there are many sellers.

• True

• False

what are the advantages to a monopolistic competition?

• higher qualities of products

• active business enviroment

• few barriers to entry

• produce inferior products

which is an example of monopolistic competition?

• netflix

• google

• tesla

True or False? companies compete based on product look, taste, and how the product is marketed.

• True

• False

In monopoly......

• companies are price takers

• you get 200 for passing go

• companies are not price takers

True or False? Monopoly has a difficult entrance.

• True

• False