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Monopolistic Competition- Short Run and Long Run- Micro 4.12

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1) The companies create a lot of waste (ex. advertising and extra packaging)
2) Higher prices lead to inefficiency
3) Companies try to differentiate their products buy adding unnecessary qualities of the product instead of improving the overall product

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1) There are no significant barriers for entry
2) There is a lot of differentiation which creates choice and diversity
3) Consumers become more knowledgeable of the products through advertising

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-This fits a monopolistic competition because each grocery store sells similar products (food, drinks, household items)
-The market has many buyers and sellers
-Each grocery store uses advertising to promote their products

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-businesses sell similar products and the market from which they buy their products from has many buyers and sellers