Question
Monopolistic Competetion is operating out in hand sanitizers industry in Pakistan according to the conditions mentioned in this case. Justifications: There are several similar brands
Monopolistic Competetion is operating out in hand sanitizers industry in Pakistan according to the conditions mentioned in this case.
Justifications:
There are several similar brands (hand sanitizers)but they do not substituteof each others (difference in quality).It is a feature of monopolistic comptetion.
There area littlerestrictions on entry or exit. Therefore, new brands are entering to meet the increasing demand of the hand sanitizers. Lowrestrictions on entry and exit is the characteristic of the monopolistic competition.
Brands in this case making their decision by themselves but their decisions do not influence their competitors. Therefore it is the case of monopolistc competition.
It is observed that heavy advertising is done by these brands due to competition, So, it is the case of monopolistic competition.
Unprecedented demand leads to high increase in prices of the product in case of monopolistic competition which has been experinced in the case of hand sanitizer.
Above mentioned justifications prove this is the case of monopolistic competition.
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