Monopolistic

• Monopolistic: hairdressers, clothing, restaurants

  • Slightly differentiated goods
  • price makers
  • profit maximisers
  • price elasticity of demand
  • non price competition
• Monopolistic market: where there are many small firms that produce similar goods, but still compete with each other
• supernormal profits can only be made in the short run and not the long run
• Hit and Run competition - where a firm will join the market when the industry is making supernormal profits and then leave once the profits fall to normal