In this article we will discuss about the sources and importance of product differentiation. Product variation refers to any change that alters 'the physical characteristics of a product' or 'the conditions under which it is sold' like changing the colour of a toothpaste tube. This is done by firms to raise their market share of a product. Consider, for example, [...]
Get the answer for: What is Monopolistic Competition? Monopolistic competition, observes E. Chamberlin, is a composite of monopoly and competition. It refers to a market situation in which there are a large number of producers but their products or services are so differentiated that the product of one firm is not regarded as a perfect substitute for that of another. [...]
The upcoming discussion will update you about the difference between monopolistic competition and oligopoly. The traditional categorisation of market structures into purely competitive, monopolistically competitive, oligopolistic and monopolistic is both worthwhile (since static processes are easier to present from a teaching perspective) and dangerous (since the dynamic process of structural change is the main issue facing businesspeople.) The four market [...]