Monopolistic competition
What do you mean by the term Monopolistic competition in brief?
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Monopolistic competition signifies to a market condition where there are numerous firms selling a differentiated product. There is competition that is keen, although not perfect, among most of the firms making much similar products. No firm can encompass any perceptible influence on the price output strategies of the other sellers nor can it be affected much by their actions. Therefore monopolistic competition signifies to competition among a big number of sellers producing close however not perfect substitutes for one other.
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