Some of the Advantages and Disadvantages of Monopolistic Competition are as follows. So let us check it out some information on monopolistic competition to know more about it.
Advantages of Monopolistic competiton are :
- In mopolistic competiton the market is more efficient than monopoly but it is less efficient than perfect competition.
- In monopolistic competiton differentiation creates choice, diversity and utitlity.
- Markets are relatively contestable as there are no significant barriers to entry in monoplistic competiton
- Numerous sellers
Disadvantages of Monopolistic competition are :
- In monopolistic competiton higher price is charged and control over price is limited.
- No market control or limited market power
- Non-price competiton
- In monoplistic competiton large firms have a cost advantages over small firms.
- You might also like advantages and disadvantages of monopoly to learn more about monopoly.