MONOPOLISTIC COMPETITION
\mənˈɒpəlˈɪstɪk kˌɒmpətˈɪʃən], \mənˈɒpəlˈɪstɪk kˌɒmpətˈɪʃən], \m_ə_n_ˈɒ_p_ə_l_ˈɪ_s_t_ɪ_k k_ˌɒ_m_p_ə_t_ˈɪ_ʃ_ə_n]\
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Perfect competition and monopoly meet halfway in this specific type of market situation. Displays features both. Several competitors offer products that are close but not perfect substitutes. Prices are at average cost levels. Several firms freely enter this highly competitive market. These are features of perfect competition. However, some consumers prefer one product over the others. This preference is strong enough that these fans keep buying it even if its price increases. This gives its producer market power in a small amount. This is a feature of monopoly. Monopolistic competition is very common in every free market.
By Henry Campbell Black
Word of the day
Procollagen Proline Dioxygenase
- mixed-function oxygenase that catalyzes hydroxylation prolyl-glycyl-containing-peptide, usually in protocollagen, hydroxyprolylglycyl-peptide. The enzyme utilizes molecular oxygen with a concomitant oxidative decarboxylation of 2-oxoglutarate to succinate. EC 1.14.11.2.
Nearby Words
- monopolise
- monopoliser
- monopolising
- monopolist
- monopolistic
- monopolistic competition
- monopolistic state fund
- monopolite
- monopolium
- monopolization
- monopolize