Economics explained
Category:
Market structures
Monopolistic competition - short run
The secret to scoring awesome grades in economics is to have corresponding awesome notes.
A common pitfall for students is to lose themselves in a sea of notes: personal notes, teacher notes, online notes textbooks, etc... This happens when one has too many sources to revise from! Why not solve this problem by having one reliable source of notes? This is where we can help.
What makes TooLazyToStudy notes different?
Our notes:
-
are clear and concise and relevant
-
is set in an engaging template to facilitate memorisation
-
cover all the important topics in the O level, AS level and A level syllabus
-
are editable, feel free to make additions or to rephrase sentences in your own words!
Looking for live explanations of these notes? Enrol now for FREE tuition!
Monopolistic competition is an interesting form of competition found in certain industries that feature characteristics of monopolies and competitive firms
Monopolistic competition has the following characteristics:
There are few barriers to entry into the market and it is easy for firms to recoup their capital expenditure on exit from the market.
Firms have some influence on the market price and are therefore price makers.
Monopolistic competition arises when the market comprises many producers who tend to use product differentiation to distinguish themselves from others.
Although their products may be very similar, because producers differentiate their products they are able to create a short-term 'monopoly', as customers see their product as unique. Therefore, for monopolistic competition to exist, consumers must perceive differences in the products offered by different firms.