A monopolistic competitive firm enjoys partial control over price. It happens because by incurring heavy selling costs, the firm is able to create a differentiated image of its product in the minds of consumers. Products are differentiated on the basis of brand, size, color, shape, etc. Buyers are attracted to buy a particular product even at a relatively higher price.
How does a firm under monopolistic competition exercise partial control over price?
Answers
Pradeep
A monopolistic competitive firm enjoys partial control over price. It happens because by incurring heavy selling costs, the firm is able to create a differentiated image of its product in the minds of consumers. Products are differentiated on the basis of brand, size, color, shape, etc. Buyers are attracted to buy a particular product even at a relatively higher price.