Monopolistic Competition Market Structure (graph)

Monopolistic Competition Market Structure (Graph) — organization of a market where numerous firms offer differentiated products. Graphically, it is represented by downward-sloping demand curves for individual firms due to product differentiation. These firms possess some market power, influencing prices, while maintaining competition through the potential entry of new firms. In the long run, economic profit tends towards zero, and the equilibrium on the graph reflects a balance between differentiation and market competition.

Sources:

Monopolistic Competition: Definition, How it Works, Pros and Cons. (December 17, 2023). Іnvestopedia. Retrieved from: https://www.investopedia.com/terms/m/monopolisticmarket.asp