Monopolistic competition. | Definition HSC 12th standard.

Monopolistic competition.

Meaning: -The Concept of Monopolistic competition was introduced by E.H Chamberlin in his book “Theory of Monopolistic competition” Monopolistic competition refers to a market structure, in which a large number of firms sell a differentiated product. “The competition is keen among many firms making or producing very similar products.” Thus, Monopolistic competition refers to the competition among large number of sellers producing close but not perfect substitutes to each other. There exists competition among large number of sellers. At the same time, they have some degree of Monopoly power in the market, as they sell differentiated product.