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Monopolistic competitive industry

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Reference no: EM131243093

In monopolistic competitive industry the products that make up that industry are virtually alike. Only a few minor differences separate one product from the other (take soap for example). In such a case one is lead to believe that consumers could chose any product and achieve the same results.

Yet, that is not the case. Consumers actually prefer other brands over another and believe the brand chosen is better. Why? Does advertising actually play that huge of a factor in the products we purchase?

Reference no: EM131243093

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