00:01
So here we're trying to distinguish between competition and monopolistic competition, right? so we have competition and we have monopolistic competition, which are different, right? and we're going to get into exactly how they are different along these four dimensions.
00:21
So the first one we have is zero profit, right? this is true in the long run in both competition and.
00:31
And monopolistic competition, right? in competition or monopolistic competition, there is no barrier to entry, right? more people can come in, more people can come in, more people can come in.
00:42
So if your industry is making profit, that's going to attract more people to enter the industry until all the profit is driven out.
00:49
So both of these have zero profit in the long run, right? two, identical products.
00:58
Now we get a difference.
00:59
Competition has identical products, but monopolistic competition does not, right? competition, everyone is doing identical things.
01:06
It makes every firm identical.
01:08
In monopolistic competition, every firm is doing something different...