00:01
Explain monopolistic competition.
00:03
How is it similar to perfect competition? how does it differ from perfect competition? both of these types of competition sell similar goods.
00:18
So perfect, the companies in perfect competition was all sell similar goods.
00:26
The companies in a monopolistic competition will also sell goods that are similar to each other.
00:32
They're both types of market structures.
00:34
Both have multiple firms.
00:38
So in perfect competition, this is a theoretical kind of market structure.
00:44
So in reality, it doesn't really exist.
00:49
This is one in which there is maximum free market competition between the companies.
00:56
There are numerous sellers and very low barriers to entry, lower compared to monopolistic competition.
01:05
Goods are standardized, meaning they're priced and manufactured using the standard methods.
01:09
While monopolistic competition uses unstandardized products.
01:15
And monopolistic competition substitutes are sold.
01:19
So that means that each of the companies produce substitutes of the goods produced by another company within the monopolistic market...
