Monopolistic competition
From Simple English Wikipedia, the free encyclopedia
Monopolistic competition is a market form. Like with Perfect competition, there are many buyers and sellers. But the market is not perfect. This is because the products are not homogenous, or because the buyers have explicit or implicit preferences.
This market form is quite common. As an example take a bakery. There are many bakeries in the town, but one of those bakeries can demand a slightly higher price for bread, because it is the only one in a certain part of the town.
| Different Market forms |
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| Perfect competition • Monopolistic competition • Oligopoly • Oligopsony • Monopoly • Natural monopoly • Monopsony |
