Intermediate Microeconomics: A Modern Approach, Seventh Edition

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Unformatted text preview: Monopolistic Competition Market Structures - Review Competitive: many firms, identical products Monopoly: single firm, no close substitutes Oligopoly: several firms, similar products, degree of product differentiation varies depending upon the market Monopolistic competition: many firms, similar products, slightly differentiated products Competitive Market This is the classic textbook market structure. Firms in a competitive market all make a product that is perfectly substitutable: all demanders are equally satisfied with any suppliers product. Firms are price takers. Hot dogs! Monopoly The single seller makes a product that has no good substitute. Other firms may be able to produce the good or service but choose not to enter the market or are barred from it. Firms are price makers. Some pharmaceuticals Oligopoly A few sellers make products that are good, but not perfect, substitutes....
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monopolistic_competition - Monopolistic Competition Market...

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