What is monopolistic competition?

Answer by  ShBryant (67)

Monopolistic competition applies to competing firms that have similar but differentiated products that don't directly compete against each other. Companies have monopolies in the short term, but the products can be substituted for each other to some extent, allowing competition to form.

Answer by  tamarawilhite (17883)

Monopolies are contrary to competition because one major player holds 90% or more of the market and seeks to drive out all competition, even if it is simply buying them.