The Four Market Structures - Monopolistic Competition

Monopolistic Competition

Do you know what is monopolistic competition?

Monopolistic is one of the market structure. There are many firms, sellers, and buyer in the market. Each of the firms have little market share. Monopolistic competition is independence because there is no collusion, this means that firms are not cooperate with one another. The product they sell are mainly differentiated product. They try to make the product as difference as possible. There are many close substitute in this market, so they try to differentiate themselves in packaging, texture, quality and so on.

Kellogg’s company will be the good example in monopolistic competition.

Kellogg’s introduce Kellogg’s Special K that is a range of cereal that help you get in shape quickly. They promote that with Kellogg’s Special K, you will get instant results in 14 days. This is how this company differentiate their product with other company’s product. 

Resources: http://www.thefreedictionary.com/monopolistic
                  http://www.investopedia.com/terms/m/monopolisticmarket.asp