specific good or service to interact in order to
facilitate an exchange.What is a 'Market'
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What is a 'Market'
Market structure
Market structure
Monopolistic competition
Lack of Collusion with so many firms it’s hard to get together and collude
Many sellers that do not take into account rivals’ reactions – each firm has a small share of the market
Marginal revenue is below price
Like a perfect competitor, zero economic profits exist in the long run
The monopolistic competitive firm has some monopoly power so the firm faces a downward sloping demand curve