can you please explain those 2 market structuers briefly and tell the difference?
2007-03-18 10:09:46 · 3 answers · asked by Suki 2 in Social Science ➔ Economics
Monopolistic competition occurs in industries where firms produce products that are close substitutes for each other but each has a "monopoly" on its own brand. Firms that advertise are usually engaged in monopolistic competition.
Monopolies occur when products do not have close substitutes
2007-03-18 23:14:57 · answer #1 · answered by meg 7 · 0⤊ 0⤋
Monopoly=no competition
Monopolistic Competition=competition between Monopolies
2007-03-18 10:16:48 · answer #2 · answered by Santa Barbara 7 · 0⤊ 1⤋
Answer by examples:
Monopoly = Microsoft
No other firm can start large enough to beat this company.
Monopolistic Competition = Pepsi and Coke
These 2 giant softdrink manufacturers battle for market share, yet no one else can start their own softdrink business without being beaten by these two.
2007-03-18 10:56:38 · answer #3 · answered by Syndus Beoulve 2 · 0⤊ 0⤋