What is Monopolistic Competition?
Pros and Cons of Monolistic Compeition
Pros: 1. The Promotion of Competition (lack of Barriers to Entry) 2. Differentiation Brings Greater Consumer Choice and Variety 3. Consumers Become More Knowledgable of Products-due to Advertising
Cons: 1. Advertising-although it can also be beneficial, it can also manipulate and distort what consumers want 2. High Expenses-Businesses have to make their product/business become well known, have to spend a lot of money. 3. Competition everywhere-Because of how easy it is to enter and exit, these businesses will always be competing with others. Though good for the consumer, it can become tiresome in some cases for the business.