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DEFINITION•Monopolistic competition is a type of imperfectcompetition such that many producers sellproducts that are differentiated from one another.•Monopolistic Competition is a market structure inwhich many firms sell products that are similar butnot identical.Source: Boundless. “Defining Monopolistic Competition.”Boundless Economics. Boundless, 21 Jul. 2015. Retrieved 14 Jan. 2016from-monopolistic-competition-280-12377
ABOUT MC2016/1/27•Monopolistic competition as a market structure was firstidentified in the 1930s by American economistEdwardChamberlin, and English economistJoan Robinson.•Characteristics of Monopolistic Competition:1. Many Sellers => Firms compete.2. Product Differentiation =>Each firm faces downwardslopingdemand curve.3. Free Entry => Economic profits are zero.
CHARACTERISTICS2016/1/271. Many Sellers => Firms compete.
CHARACTERISTICS2016/1/272. Product Differentiation => Each firm facesdownwardsloping demand curve.
CHARACTERISTICS2016/1/273. Free Entry => Economic profits are zero.