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Monopolistic competition

In economics, monopolistic competition is a market type in which many firms compete by selling similar, but slightly different products.

Expanded Definition

Think soft drinks. Many types, differing only in flavor and packaging, of what is, essentially, flavored, carbonated, sweetened water.

Firms in this market spend a lot of money on advertising, trying to impress the differences of their products upon the buyers and building the brand.

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