What are the features of Monopolistic Competition

Question

What are the features of Monopolistic Competition?

Answer 1

The important features or assumptions of monopolistic competition are as follows:

a. There are huge numbers of sellers or producers

b. This deals along with differentiated products.

c. There are free exit and entry of firms to the markets.

d. The selling cost finds the demand for the products.

e. Here is no association of firms

f.  Here is no price competition.

g. Here is lack of knowledge of the market.