Question

What kind of models have been advanced to assess the desirability of product variety under monopolistic competition​

Answer 1

Models to assess the desirability of product variety under monopolistic competition

Explanation:

• Monopolistic competition is a form of imperfect competition, so that many producers sell products which are classified as goods but not perfect substitutes. In monopoly competition, a company takes as given the prices charged by its rivals, and ignores the impact of its own prices on other companies ' prices.
• Companies which are efficient monopolistic ally retain spare capacity. Models of monopolistic competition are frequently applied to model industries. Examples of companies with market dynamics close to monopoly rivalry include restaurants, cereals, clothes, shoes, and service industries.