BUISENESS MANAGEMENT
BUSINESS STRUCTURE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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competition based on a products appearance, quality, or design rather than price
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market structure having all conditions or pure competition except for identical products.
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market structure characterized by a single producer
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market structure in which a few large producers (sellers) have the ability to affect prices in the form of imperfect competition
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Detailed explanation-1: -Monopolistic competition exists when many companies offer competing products or services that are similar, but not perfect, substitutes. The barriers to entry in a monopolistic competitive industry are low, and the decisions of any one firm do not directly affect its competitors.
Detailed explanation-2: -MONOPOLISTIC COMPETITION-is the market structure that has all the conditions of a perfect competition EXCEPT for identical products. By making its product a little different, the monopolistic competitor tries to attract more customers and monopolize a small portion of the market.
Detailed explanation-3: -In monopolistic competition, we still have many sellers (as we had under perfect competition). Now, however, they don’t sell identical products. Instead, they sell differentiated products-products that differ somewhat, or are perceived to differ, even though they serve a similar purpose.
Detailed explanation-4: -Monopolistic competition is a type of market structure where many companies are present in an industry, and they produce similar but differentiated products. None of the companies enjoy a monopoly, and each company operates independently without regard to the actions of other companies.
Detailed explanation-5: -Like pure competition, monopolistic competition is a market structure referring to a large number of small firms competing against each other. However, firms in monopolistic competition sell similar but highly differentiated products.