Answer: Monopolistic Explanation:
Monopolistic competition characterizes an industry in which many firms offer products or services that are similar, but not perfect substitutes. Barriers to entry and exit in a monopolistic competitive industry are low, and the decisions of any one firm do not directly affect those of its competitors. Monopolistic competition is closely related to the business strategy of brand differentiation.
Key Takeaways:
1. Monopolistic competition occurs when an industry has many firms offering products that are similar but not identical.
2. Unlike a monopoly, these firms have little power to set curtail supply or raise prices to increase profits. 3. Firms in monopolistic competition typically try to differentiate their product in order to achieve in order to capture above market returns. 4. Heavy advertising and marketing is common among firms in monopolistic competition and some economists criticize this as wasteful.
