Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 1: Q.5 (page 9)

What is the relationship between product

differentiation and monopolistic competition?

Short Answer

Expert verified

In both product differentiation and monopolistic competition differentiated or separate products to deal with.

Step by step solution

01

Step 1. Product differentiation and monopolistic competition. 

A market system in which a high number of vendors sell distinct items is known as monopolistic competition.

02

Step 2. Explanation

Monopolisitc competition is a market structure that is a combination of a monopoly and perfect comeptition. Differentiation of products causes monopolisitc competition to differ from perfect competition. It the element of product differentiation that makes this market a blend of monopoly and perfect comeptition.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Why is it unfair or meaningless to criticize a theory as “unrealistic?”

Suppose you have a team of two workers: one is a baker and one is a chef. Explain why the kitchen can produce more meals in a given period of time if each worker specializes in what they do best than if each worker tries to do everything from appetizer to dessert.

Suppose, as an economist, you are asked to analyze an issue, unlike anything you have ever done before. Also, suppose you do not have a specific model for analyzing that issue. What should you do? Hint: What would a carpenter do in a similar situation?

What are examples of individual economic agents?

Why do you think that most modern countries’ economies are a mix of command and market types?
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free