In monopolistic competition,firms can have some market power

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In monopolistic competition, firms are able to have some market power by producing differentiated products that are not perfect substitutes for those of their competitors. This allows them to charge a slightly higher price and still attract customers who prefer their unique product. While there may be some barriers to entry or exit in the industry, it is primarily the differentiation of products that gives firms their market power. Size alone is not a determining factor in creating market power in monopolistic competition.

In Monopolistic Competition,firms Can Have Some Market Power