Posted: January 25th, 2016

Explore how firms in monopolistic competition differentiate their products or services to generate a market niche and gain more control over their pricing.

6-1 Discussion: Monopolistic Competition (Chapter 8 Reading)
Explore how firms in monopolistic competition differentiate their products or services to generate a market niche and gain more control over their pricing.
To what extent can product differentiation create barriers to entry?
How can product differentiation help firms to increase their short-run profits?
Give an example of a firm in monopolistic competition, and discuss the strategies used by the firm to differentiate itself and perhaps earn economic profits in the short run.