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What is monopolistic competition?
Monopolistic competition refers to the market structure where a number of businesses operate independently but slightly differs in what they offer to their target audience. The common factor is the businesses are competing for the same set of target audience. This market structure came into existence when two ace economics identified it, Edward Chamberlin and Joan Robinson.
We make things easier for you. If you are to breakdown this topic, monopolistic competition, then you must realize that it falls somewhere between monopoly and perfect competition (which is, of course, a theoretical state indeed! A number of industries like restaurant business, retailing, and consumer services like salon and the like.
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