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Shops that sell live bait to people in Alabama may be monopolistically competitive if there is product differentiation and differentiation by location.
Monopolistically Competitive
An arrangement in the economy where countless firms are selling products that look similar but are unique, thus permitting them a slight advantage in the market.
Product Differentiation
The method of differentiating a product or service to appeal more to a specific target market.
Differentiation
The process of distinguishing a product or service from others to make it more attractive to a particular target market.
- Master the idea of monopolistic competition and recognize how it diverges from other types of market organizations.
- Review the impact of distinguishing products on the power within the market and the alternatives provided to consumers.
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Learning Objectives
- Master the idea of monopolistic competition and recognize how it diverges from other types of market organizations.
- Review the impact of distinguishing products on the power within the market and the alternatives provided to consumers.
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