Review:
Monopolistic Competition
overall review score: 4.2
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score is between 0 and 5
Monopolistic competition is a type of market structure characterized by many firms selling similar but not identical products, allowing each firm to have some degree of market power.
Key Features
- Many firms competing in the market
- Differentiated products
- Some degree of pricing power
Pros
- Encourages innovation and product differentiation
- Allows for some level of price control by firms
- Promotes competitiveness and consumer choice
Cons
- May lead to inefficient allocation of resources
- Potential for firms to engage in excessive advertising or branding efforts
- Can make it difficult for consumers to make informed decisions