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| 1. |
What do you mean by monopolistic competition? |
| Answer» monopolistic competition refers to market situation in which there are large number of firms which sell closely related but differentiated products .market of products like soap toothpaste AC are examples of monopolistic competition<br>Monopolistic competition is a market in which there are many buyers and sellers of the product but the product of each seller is different from that of the other. For example- toothpastes : colgate, close up,pepsodent etc . are all toothpastes but have different taste ,packagings , ingredients i.e., the product is differentiated.<br>Monopolistic competition is a market structure which combines elements of monopoly and competitive markets. | |