MONOPOLISTIC Meaning and
Definition
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Monopolistic, also known as monopolistic competition, is an economic term used to describe a market structure that exhibits characteristics of both perfect competition and monopoly. In a monopolistic market, various firms produce and sell similar but differentiated products, giving them a certain degree of control over the market.
One defining feature of monopolistic markets is the absence of barriers to entry. This means that new firms can easily enter the market and compete with existing ones, although they may face initial challenges in establishing their brand or product differentiation. Additionally, firms in a monopolistic market have some control over the price of their product, allowing them to set prices at a level that maximizes their profits.
The differentiation of products is a crucial aspect of monopolistic competition. Firms use branding, marketing strategies, product attributes, and packaging to differentiate their products from competitors' offerings. This creates a certain level of product diversity and allows firms to capture a segment of the market with loyal customers who value their specific product features or brand image.
Another notable characteristic of monopolistic markets is that firms operate with a downward-sloping demand curve, indicating that consumers perceive their products as somewhat unique. This gives firms some market power and the ability to charge prices higher than marginal cost in the short run, although excessive profits tend to attract new entrants and erode market power over time.
Overall, the concept of monopolistic reflects a market structure where numerous firms compete by offering differentiated products, allowing for some individual control over prices and brand loyalty, while facing the potential for entry from new competitors.
Common Misspellings for MONOPOLISTIC
- monoplistic
- nonopolistic
- konopolistic
- jonopolistic
- minopolistic
- mknopolistic
- mlnopolistic
- mpnopolistic
- m0nopolistic
- m9nopolistic
- mobopolistic
- momopolistic
- mojopolistic
- Monopollisic
Etymology of MONOPOLISTIC
The word "monopolistic" is derived from the noun "monopoly", which comes from the Greek roots "mono-" meaning "one" and "polein" meaning "to sell". The term "monopoly" was first recorded in English in the early 16th century and referred to the exclusive control or possession of a particular commodity or trade by a single entity. The suffix "-istic" is added to form the adjective "monopolistic", denoting characteristics or qualities related to a monopoly.
Similar spelling words for MONOPOLISTIC
- monopolise,
- Monoplastic,
- monopolizer,
- monoblastic,
- monopoliser,
- monopolize,
- monopolization,
- monoblast,
- monoblstic,
- monopolist,
- monopolisation.
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