Make a list of brands of Toothpastes that are available in India

And list down what uniqueness each brand offers?

Colgate Close Up Meswak Babool

 Colgate offers all round dental protection Close Up the first gel toothpaste offers the goodness of milk calcium Meswak promises ayurvedic content Babool features natural toothpaste containing the ayurvedic and medical benefits of the babool tree

But the basic product is tooth cleansing paste, using the same ingredients.

Try to place the names mentioned above under either monopoly or Perfect competition
There are many players but not as large as in perfect competition And each sells a differentiated product exercising some degree of market power
Thus we get another form of market

Features of monopolistic competetion

1. Large number of buyers and sellers ( but not as large as in perfect competition) 2. Heterogeneous products ( somewhat differentiated products) 3. Selling costs ( every producer tries to promote through attractive packaging, advst. And othr incentives) 4. Independent decision making: Prices are decided independently by the firms due to presence of large firms selling heterogeneous firms. 5. Imperfect knowledge: Information about cost, quality, price is not uniformly informed to all buyers and sellers in the market 6. Unrestricted entry and exit: Hence new firms can easily imitate the existing products and enter the market.

Monopolistic competition conduct in P>MR the short run

P

MC

MC = MR AC

Ps ACs

AR = D

MR
Qs

Monopolistic competition conduct in the long run If P>AC new firms will enter
P

the industry and the firms market segment will shrink - its individual demand curve shifts leftwards

LRMC LRAC
PL

ARL = DL

MRL

The long run equilibrium QL is achieved at P = AC, however, is not minimized there is excess capacity