Question

prove below :-

product discrimination is the main characteristic of monopolistic competition​

Answer 1

Answer:

Monopolistic Competition-Monopolistic Competition is that condition of market in which there are many sellers of any commodity but commodity of every seller is different from commodities of other sellers in any way. Therefore, product differentiation is main quality of monopolistic competition.

The four key characteristics of monopolistic competition are:

(1) large number of small firms

(2) similar but not identical products sold by the firms,

(3) relative freedom of entry into and exit out of the industry, and

(4) extensive knowledge of prices and technology.