This article will review the monopolistic market, along with phone number library its characteristics and examples. You will also learn how to excel in competition in the monopolistic market. Read more below, yes!
Definition of Monopolistic Market
Basically, a monopolistic market is a type of market that has the same or homogeneous products, but has different varieties. So, the products sold in a monopolistic market are the same type, but each has its own differentiation. You can distinguish the products sold by producer A with producer B in this market.
The monopolistic market itself has characteristics of a combination of monopoly and perfect competition markets. This is quite extreme, but it also makes this market have its own category. Monopolistic is not a perfect competition market, nor is it monopolistic.
The hallmark of a monopolistic market is the existence of product differentiation that creates customer preference or loyalty to a particular product or brand. This allows companies to influence the price of their products with little or no direct competition from competitors.
In this market, there are a number of companies competing in selling differentiated products, meaning that the products offered have differences in characteristics, brands, designs, or quality.
This market also drives intensive marketing efforts and product innovation to differentiate itself from competitors and maintain a competitive advantage.
For more details, you can understand more about monopolistic competition markets in the examples & characteristics of monopolistic competition markets which will be discussed in the next section.
Characteristics of Monopolistic Market
Like other types of markets, monopolistic markets also have their own characteristics. Here are the characteristics that indicate a monopolistic competitive market.
1. There are many sellers in the market
The first characteristic is the presence of a large number of sellers in the market. This characteristic is an element similar to a perfect competition market, namely the number of sellers. This can cause production in a company to be relatively small compared to total production in the market.
