Monopolistic Competition

Assumptions and Market Conditions

1. Numberous firms with differentiated products

2. Few Barriers to entry

3. The ability of firms to exert some influence over the price and market

4. Significant non-price competition in the market

Oligopoly

1. Relatively few firms with differentiated products

2. Farily significant barriers to entry

3. Strongly interdependent firms (price tend to fixed)