To quickly review: the characteristics of Monopolistic Competition tell us the following:
Many Firms
No single firm is sufficiently large enough to affect the demand curves faced by other firms.
Product Differentiation
Each firm sells a product that differs in some way from that of all of its competitors, so each firm faces a downward sloping demand curve.
Free Entry
Long run profits are zero. Firms enter the industry when it is profitable until profits return to zero, losses lead to exit until profits return to zero.

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