Monopolistic Competition Large number of firms Competition Price differentiation Unique products Looks and tastes Customer service

vice Location High quality image

Some price-setting power Through unique product Not too much power Easy to enter or exit market Price= LRATC Some non-price competition Close to perfect competition Imperfect because it doesnt lead to lowest cost Maximization More firms means a more elastic demand curve Max profit where MR=MC Price will equal where that point intersects Demand curve Minimize loss Loss= (ATC-PRICE) x Quantity Price>AVC Allocatively and Productively Inefficient