Monopolistic Competition in the Retail Industry

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Monopolistic Competition in the Retail Industry
The retail industry is a prime example of the modern version of Chamberlin and Robinson’s model of Monopolistic Competition (Grewal, 441). The retail industry consists of vast markets with different brands and goods of one common goal, to sell their products. To cater to this rapidly changing market many large scale retailers are findings ways to make their product more appealing to the public in hopes of gaining market share over their competition. As prices rise, customers are forced to buy substitutes of well-known brand names or alter their preferences. This results in the phenomenon known as monopolistic competition.
Monopolistic competition is defined as the result of many firms
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The percentage change in price is greater than the percentage change in demand. The consumer surplus is less than it would be during the normal season for a good due to the producer being able to charge more. During the peak season for a good, such as Star-Bucks pumpkin spiced latte in mid-September, the company can make more money by introducing a product for a short period of time than it would if it offered the product year round. In monopolistic competition, it is best to offer differentiated products constantly during the seasons, such as the addition of holiday beverages and food items in grocery
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