Advertisements
Advertisements
Question
Give two reasons why monopolistic competition is the most realistic form of a market.
Advertisements
Solution
Monopolistic competition is the most realistic form of market because:
- Most of the products sold in the market have close substitutes.
- The sellers of products are in large numbers.
RELATED QUESTIONS
In monopolistic competition, the essential feature is ______.
Monopolistic competition is a form of ______.
Explain price and output determined under monopolistic competition with help of the diagram.
Explain any three features of a monopolistic market.
The following diagram represents the demand curve of a firm under ______.

Under which market form firm is price taker?
Which statement best describes monopolistic competition?
Why does a firm in monopolistic competition have some control over the price of its product?
How is the demand curve of a firm under monopolistic competition usually described?
Which of the following is a real-life example of monopolistic competition?
