Monopolistic Competition (Revision Quizlet Activity)

Key terms to revise

Brand loyalty: Extent to which consumers favour one product over another

Cross price elasticity of demand: Responsiveness of demand for one good to changes in the price of another good or service

Free entry and exit: When new producers can easily enter into an industry and existing producers can easily leave that industry

Innovation: Commercial development of exploiting new or improved goods and services

Marketing: Process of building strong customer relationships in order to capture value from customers in return

Monopolistic competition: Market structure with many companies selling differentiated products

Non-price competition: Competition based on factors other than price such as design and functionality

Product differentiation: When a business seeks to distinguish products from one another by real or illusory means