Hi, need to submit a 750 words paper on the topic Monopolistic Competition. Concept, Advantages and Limitations.

Hi, need to submit a 750 words paper on the topic Monopolistic Competition. Concept, Advantages and Limitations. These factors could be the brand name, brand personality, quality etc. Examples of firms competing in the monopolistic market are clothing brands, restaurants, and other service industries. This kind of competition is termed as monopolistic because each firm has its unique position in the market despite the presence of several other competitors. They usually have a loyal customer base that comprises of people who are not frequent switchers. Switching is generallyassociated with some sort of dissonance occurring in the whole buying experience and customers are generally indifferent to small price fluctuations. As far as the market is concerned, it has certain key characteristics including: presence of many firms selling the same commodity with a slightvariance also known as a Unique Selling Proposition (USP) that makes them stand out amongst the market clutter. Product may have substitutes but the exact identical cannot be present due to its unique differentiating factors that are not based on prices. Customers have lesser control over prices as compared to the producers. Prices are also unlikely to be influenced by the competition. Market leadership can be attained but by a small margin and on the basis of captured market share. There are no serious barriers to entry as compared to other market competition types. Production is usually lesser than the capacity and is based on carefully calculated demand. There are several problems associated with monopolistic competition that have been identified by several economists. Firstly, this form of competition will lead to no economic profits in the long run.