7.3+Notes+and+Questions

In monopolistic competition, many companies compete in an open market system to sell products that are similar but not identical. Each firms holds a monopoly over its own product.
==The main difference between perfect competition and monopolistic competition is that differentation enables a monopolistically competitive seller to profit from the differences between his or her products and competitors products.==

Price fixing is an agreement among firms to sell at the same or very similar prices.
QUESTIONS # 1-4, 6 1. Many firms, few artificial barriers to entry, slight control over price and differentiated products. 2. New size, color or shape of a product. 3. An oligopoly is when the four largest firms produce 70 to 80 percent of the output. 4. They help producers because they can set the prices at whatever they want and people will still buy. 6. A. oligopoly B. oligopoly C. oligopoly D. Monopolistic E. Monopolistic