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MONOPOLISTIC COMPETITION MONOPOLISTIC COMPETITION exists when a large number of sellers produce products that are very similar but are perceived by buyers as different. PRODUCT DIFFERENTIATION , making buyers think similar products are different, is a key to success. Oligopoly: Few Sellers An OLIGOPOLY is a form of competition in which just a few sellers dominate a market. a. The initial investment required to enter the market is usually high. b. Prices among competing firms tend to be close to the same. c. Examples include breakfast cereal, beer, automobiles, and soft drinks. Monopoly: One Seller A MONOPOLY is a market in which there is only one seller for a product or service. a. U.S and Turkish laws prohibit the creation of monopolies. b. New laws have ended the monopoly status of utilities in some areas creating intense competition among utility companies. c.
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This note was uploaded on 03/26/2012 for the course GEB GEB1011 taught by Professor Henn during the Spring '10 term at Broward College.

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