Major Characteristics
There are six characteristics of monopolistic competition (MC):
- Product differentiation
- Many firms
- Free entry and exit in the long run
- Independent decision making
- Market Power
- Buyers and Sellers do not have perfect information (Imperfect Information)
Read more about this topic: Monopolistic Competition
Famous quotes containing the word major:
“Self-centeredness is a natural outgrowth of one of the toddler’s major concerns: What is me and what is mine...? This is why most toddlers are incapable of sharing ... to a toddler, what’s his is what he can get his hands on.... When something is taken away from him, he feels as though a piece of him—an integral piece—is being torn from him.”
—Lawrence Balter (20th century)