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Monopolistic Competition |
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Monopolistic Competition Competition between two or more companies where all companies produce similar (but not exactly the same) products, but all leave some excess production capacity so that total supply for the market does not meet demand. This results in product prices remaining artificially high and therefore larger profits for the companies involved. Monopolistic competition, when it is the result of collusion between companies, can be illegal under some circumstances. It contrasts with perfect competition. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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