monopolistic competition managerial economics
DESCRIPTION
TRANSCRIPT
![Page 1: Monopolistic competition Managerial Economics](https://reader036.vdocuments.site/reader036/viewer/2022082805/54be89bd4a7959480b8b45a5/html5/thumbnails/1.jpg)
MONOPOLISTIC COMPETITION
![Page 2: Monopolistic competition Managerial Economics](https://reader036.vdocuments.site/reader036/viewer/2022082805/54be89bd4a7959480b8b45a5/html5/thumbnails/2.jpg)
Developed by Edward H Chamberlin
It is a blend of monopoly & perfect competition
It is a market situation in which there are many sellers of a particular product,but the product is differentiated
Monopolistic Competition
![Page 3: Monopolistic competition Managerial Economics](https://reader036.vdocuments.site/reader036/viewer/2022082805/54be89bd4a7959480b8b45a5/html5/thumbnails/3.jpg)
Large number of sellers
Product differentiation
Free entry & exit of firms
Non price competition
Price policy
FEATURES
![Page 4: Monopolistic competition Managerial Economics](https://reader036.vdocuments.site/reader036/viewer/2022082805/54be89bd4a7959480b8b45a5/html5/thumbnails/4.jpg)
Selling cost
Less mobility
Imperfect knowledge
Cont’d
![Page 5: Monopolistic competition Managerial Economics](https://reader036.vdocuments.site/reader036/viewer/2022082805/54be89bd4a7959480b8b45a5/html5/thumbnails/5.jpg)
No significant barriers to entry
Differentiation creates diversity, choice and utility
Dynamically efficient and innovative in terms of new production process and products
Advantages
![Page 6: Monopolistic competition Managerial Economics](https://reader036.vdocuments.site/reader036/viewer/2022082805/54be89bd4a7959480b8b45a5/html5/thumbnails/6.jpg)
Some doesn't create utility generate waste
Profit maximization
Disadvantages
![Page 7: Monopolistic competition Managerial Economics](https://reader036.vdocuments.site/reader036/viewer/2022082805/54be89bd4a7959480b8b45a5/html5/thumbnails/7.jpg)
![Page 8: Monopolistic competition Managerial Economics](https://reader036.vdocuments.site/reader036/viewer/2022082805/54be89bd4a7959480b8b45a5/html5/thumbnails/8.jpg)