Monopolistic Competition Defined
Monopolistic competition is a competitive company that monopolizes a market to influence its prices by adjusting their production rates. Such product production produces less than perfect copies of the original and in such a way that they are the only ones producing it. Thus the monopolistic company exploits their own brand name by reaping a higher profit in comparison to what they would have done under normal circumstances. However, in the end a balance results as other competitors join forces to drive the other business into a zero profit situation by forcing the price of the product down. The company will continue until they are stopped.