In a monopolistically competitive market structure, each firm sells a good that is:

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In monopolistically competitive markets, firms sell goods that are slightly different from those of their competitors. This differentiation allows firms to charge slightly different prices and creates a degree of market power, leading to non-price competition. Firms do not necessarily produce at minimum average or marginal cost, and the goods are not identical to those of other firms in the market.

In a Monopolistically Competitive Market Structure, Each Firm Sells a Good