MonopolisticCompetition<br />What is it?<br />
Monopolistic Competition Defined<br /><ul><li>Monopolistic Competition is a Market Structure in which multiple Producers m...
The goods are similar enough to be substitutes for each other
The Producers must engage customers in areas beyond price in order to sell their goods.
This is referred to as Non-price competition</li></li></ul><li>Features<br /><ul><li>Large number of buyers and sellers
No business has total control over the market
Product differentiation
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Monopolistic competition

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Monopolistic competition

  1. 1. MonopolisticCompetition<br />What is it?<br />
  2. 2. Monopolistic Competition Defined<br /><ul><li>Monopolistic Competition is a Market Structure in which multiple Producers make similar, but not identical products
  3. 3. The goods are similar enough to be substitutes for each other
  4. 4. The Producers must engage customers in areas beyond price in order to sell their goods.
  5. 5. This is referred to as Non-price competition</li></li></ul><li>Features<br /><ul><li>Large number of buyers and sellers
  6. 6. No business has total control over the market
  7. 7. Product differentiation
  8. 8. High elasticity of demand
  9. 9. Such market leads to rise of non-price competition
  10. 10. Eg. Offers by Vodafone/ Airtel</li></li></ul><li>Graphical Representation of the market structure<br />
  11. 11. Pros and Cons<br /><ul><li>Pros
  12. 12. Different
  13. 13. Have good incentives
  14. 14. Have a degree of market power
  15. 15. Cons
  16. 16. Many competitors
  17. 17. Have to accept low profit margins
  18. 18. Easy for others to enter the market</li></li></ul><li>Examples<br />
  19. 19. Thank you<br />VenkateshEswar<br />JaideepChawla<br />SushantShetty<br />AdityaMahagaonkar<br />SudeepChatterjee<br />Ruth Dhamone<br />TanviShenoy<br />
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