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ECON CHAPTER 14 NOTES AND TERMS – MONOPOLISTIC COMPETITIONWHAT IS MONOPOLISTIC COMPETITION?1.Quality The quality of a product is the physical attributes that make it different from the products of other firms. oIncludes design, reliability, service provided to the buyers, ease of access, etc. 2.Price Firms that make high quality products can charge a higher price than a firm that makes a lower-quality product.3.Marketing Firms use marketing to inform consumers about what makes their product special. oConsists of advertising and packagingMonopolistic competition has no barriersto prevent new firms from entering the industry in the long run. Examples of firms in monopolistic competition include: paint, lighting fixtures, furniture, electronics, bakeries, sporting and athletic goods, plastic bags, clothing, etc.