what is the relationship between product differentiation and monopolistic competition?
A central feature of monopolistic competition is that products are differentiated. There are four main types of differentiation: Physical product differentiation, where firms use size, design, colour, shape, performance, and features to make their products different. For example, consumer electronics can easily be physically differentiated.
The three conditions for monopolistic competition are (1) a large number of. producers, (2) differentiated products, and (3) free entry and exit. a. There are many bands that play at weddings, parties, and so on. There are no sig-. nificant barriers to entry or exit.