Buyers and sellers are so numerous and well informed that all elements of monopoly are absent and the market price of a commodity is beyond the control of individual buyers and sellers.
Monopolistic competition
Many buyers and sellers of differentiated products.
Relatively easy to join the market.
Large number of independent firms.
Firms are price makers and profit maximisers.
Examples: restaurants, hairdressers.
A state of limited competition, in which a market is shared by a small number of producers or sellers.
Monopoly:
The exclusive possession or control of the supply of or trade in a commodity or service.
UK supermarket sector: nice link here.
Market share figures for 2016 here. Find more up-to-date information and reference it appropriately according to the Harvard style.
UK supermarkets:
Impact of competing in a competitive market:
Price
In a highly competitive market, businesses have less control over the prices they charge.
Profits
These have to be shared with a number of businesses in a competitive market.
Do firms in a competitive market try to engage with their customers?
Why?
Innovation
In highly competitive markets innovation will be encouraged.
Product range
The failure to match a rivals's extensive product range might result in lost customers.
Click on the graphic:
Marketing
A competitive market is likely to have high levels of marketing spending.
