In the model of monopolistic competition, there:

are a large but fixed number of sellers.
is only one seller, but many potential sellers.
are many sellers, but they are protected by the government from the full forces of competition.
is free entry, but all sellers are price searchers.


At equilibrium in the model of monopolistic competition, there is:

zero profit and zero deadweight loss.
zero profit and positive deadweight loss.
positive profit and zero deadweight loss.
positive profit and positive deadweight loss.


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