Ved monopolistisk konkurranse produserer bedriftene produkter som skiller seg fra hverandre i kvalitet og utforming, men bedriftene konkurrerer om de samme etterspørrerne. Monopolistisk konkurranse kalles derfor ofte for merkevarekonkurranse, da produsentene har «monopol» på sin merkevare samtidig som varen substitter konkurrentenes «merkevarer».
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