Monopolistically competitive firms achieve the degree of market power they command through

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Monopolistically competitive firms achieve market power through product differentiation. By differentiating their products through packaging, branding, design, quality, etc., firms are able to create a perceived difference between their product and their competitors'. This enables them to charge a higher price and still retain a market share. Size, collusion, and barriers to entry are not necessarily factors in achieving market power in a monopolistically competitive market.

Monopolistically Competitive Firms Achieve the Degree of Market Power They