Monopolistic Competition
Summary of Monopolistic Competition
A condition in the marketplace wherein there are several producers of a product of a given class, but purchasers perceive differences in quality or value among the products of the various manufacturers, thereby according a unique character to each manufacturer's products. For example, there are multiple producers of bourbon whiskey, yet the market segments the various products according to tastes and perceived quality. As a result, a given producer enjoys a monopoly in his particular product, although there are like products offered by other producers.
(Main Author: William J. Miller)
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