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MONOPOLISTIC COMPETITION
Developed by Edward H Chamberlin
It is a blend of monopoly & perfect competition
It is a market situation in which there are many sellers of a particular product,but the product is differentiated
Monopolistic Competition
Large number of sellers
Product differentiation
Free entry & exit of firms
Non price competition
Price policy
FEATURES
Selling cost
Less mobility
Imperfect knowledge
Cont’d
No significant barriers to entry
Differentiation creates diversity, choice and utility
Dynamically efficient and innovative in terms of new production process and products
Advantages
Some doesn't create utility generate waste
Profit maximization
Disadvantages
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