In monopolistic competition what effect do price variations generally have on the market as a whole

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Social Studies

Trevon Juarez

10 July, 05:33

In monopolistic competition what effect do price variations generally have on the market as a whole

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Valeria Moyer · Answer 1

The monopolistic competition has a little effect to the price variations generally have on the market as a whole. Monopolistic competition refers to the product differentiation by different producers and sellers, and do not aim to substitute other products. In monopolistic competition, a company uses the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms.