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Some monopolistic businesses raise their prices higher than perfect competition businesses because their products differentiate from others so they can have some sort of power over the market. For example, Gucci, Dior, and Louis Vuitton hold more power over clothing businesses like Hollister and Pacsun because they raise their prices more than other businesses.

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Because there are so many fast food restaurants, clothing stores, and grocery stores, there is an excess of businesses, which also leads to waste. For example, if a small town has a Walmart as the only grocery store, everyone will go there. If they add a Target and Cub, the number of people at each store is low, then more products are wasted.

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It's fairly easy to join a monopolistic competition. Unlike a monopoly, there are countless sellers. There are hundreds of clothing stores, shoe brands, perfume brands, etc. It makes it easier for businesses to have a chance to reach the top. For example, if someone wants to make an organic soap business, it will be easy because there are many and isn't a single business run by one seller.

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Because there are so many different businesses that make clothes, shoes, body care, etc. there's a wide variety and choice of products you can buy. For example, if you are buying sneakers, there are many shoe businesses like Nike, Adidas, and Underarmour. They all make sneakers but all slightly different.

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It's fairly easy to enter and exit the monopolistic competition. Since it's easy to substitute the similar products, it's not difficult to create a monopolistic competition business.

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When sellers in a monopolistic competitive business sell similar products, the differentiations aren't just the physical qualities. That could be the location it's in, the quality, how durable it is, etc.

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The purpose of Bath & Body Works is to supply moisturizing and lasting products that have very unique scents. They have products like shower gels, body sprays, and lotions. Their mission is to provide unmatchable customer service while also selling unique scented products.

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These products are all crackers, but they are all slightly different

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All of these businesses sell the same products, clothes. But the difference is the style, quality, and price.

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1. This market includes multiple sellers, not just a single one

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1. This market includes multiple sellers, not just a single one

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2. The sellers produce similar, but slightly different products

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2. The sellers produce similar, but slightly different products

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3. Businesses can easily enter and exit the monopolistic competition

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3. Businesses can easily enter and exit the monopolistic competition

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A monopoly competition is when multiple sellers sell products that are all the same but slightly different

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A monopoly competition is when multiple sellers sell products that are all the same but slightly different

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This monopolistic competition business is very popular, but it competes with brands like Dove and Victoria's Secret

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This monopolistic competition business is very popular, but it competes with brands like Dove and Victoria's Secret

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Bath & Body Works creates their famous body lotions and shower gels, just like Victoria's Secret. But they are extreme competitors. Their products are basically the same except different scents and labels.