Monopolistic Competition by Franklyn Centeno Portillo

These are some characteristics that are based on businesses incorporated into monopolistic competition: 1)The market includes many buyers and many sellers. 2)The firm produces and sells slightly differentiated products. and 3) Firms have easy entry into and exit out of the market.

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This is a great example of monopolistic competition because it shows two very popular and competitive airlines in this industry trying to convince consumers to fly with their airline due to a lot of factors including: customer service, low prices, accuracy of departure/arrival times, and several other factors.

Some Pieces of information that are important towards Monopolistic Competition: 1) Not all products are exactly the same as it can come with differences for an example Delta and American Airlines have little differences that consumers slightly notice such as mileage points, baggage fees, food/drinks, amongst other services. 2) Price Searchers are firms that sell a small differentiated product. For example, Delta and American airlines are price searchers due to the fact that they are different.

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Disadvantages of Monopolistic Competition

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1) There is a lot of competition leaving for firms to attract more of your customers. An example is that American Airlines is starting to lose clients due to more frequent delays in flights compared to delta.

2) Misleading Advertisements that a lot of firms use to intimidate the opposing firms and convince consumers why their product is better. An example Delta might make a commercial talking about negative statements about American Airlines and will promote why their airlines is better.

Advantages of Monopolistic Competition

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1) Customers receive more of a slight variety of different products in similar retail stores.

2) Any business can enter the competition and make a positive profit outlook.

3) Easier for consumers to choose based on factors such as price, location, quality of good, and more factors