# Monopolistic Competition with a Homogeneous Product

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In monopolistic competition, firms produce differentiated products. Moreover, in this Demonstration based on a numerical example found in [1], each one of the monopolistically competitive firms produces a homogeneous product with free entry and exit. The demand function is given by and the cost function is (where is fixed costs).

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Contributed by: Christos Papahristodoulou (January 2014)

(Mälardalen University, Sweden)

Open content licensed under CC BY-NC-SA

## Snapshots

## Details

References

[1] D. Carlton and J. Perloff, *Modern Industrial Organization*, 4th ed., Boston: Pearson/Addison–Wesley, 2005.

[2] Wikipedia. "Monopolistic Competition." (Jan 13, 2014) en.wikipedia.org/wiki/Monopolistic_competition.

## Permanent Citation

"Monopolistic Competition with a Homogeneous Product"

http://demonstrations.wolfram.com/MonopolisticCompetitionWithAHomogeneousProduct/

Wolfram Demonstrations Project

Published: January 17 2014