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Monopolistic competition Monopolistic competition or monopoly or monopolistic competition is a type in which there is a significant number of producers operating in the market without a dominant control by any of these in particular. The key issue here is that it presents a product differentiation, non-homogeneous commodity, ie a particular product, depending on the producer, may have variations that allow it to be, in some respect different from similar products made by other companies. Competition, then, will not give prices but, for example, product quality, service for sale or aftermarket, location and access to product, advertising and packaging, etc.. Another feature to highlight of monopolistic competition is the easy entry and exit to the industry by the producers.A large number of producers of a specific property allows companies do not require large amounts of money or a large size to compete, the costs, however, can be increased by the need for differentiated from other competitors. An example of such competition may be the women's apparel market. The producers, though engaged in producing clothes for women, dresses are not the same as those of others, since the products of one or the other are different in quality, design, sales service, etc.., Making each product is different other without ceasing to be women's clothing. Monopolistic competition markets lie between the monopoly and oligopoly and have some features of each of these markets. They seem to oligopoly in which there are a limited number of companies producing and selling in this sector and there are no barriers to entry: any competitor has the facility to enter or exit the market.In the consumer market is capable of distinguishing the goods or services produced by other brands. Corey Ribotsky Thus it is as if every company had a monopoly on their mark, and thus can exert some control over the price of your product. Corey S. Ribotsky The seller faces a decreasing demand curve, because it can afford to raise the price to lose some customers but not all, as it has some power over price. As a result of this growing demand, the balance of each company in the short term is very similar to the monopoly. To maximize profit, each firm will set that level of output marginal revenue equals marginal cost.As the monopolist, the company in this market may also get extra benefits, although these benefits will remain the only short term because the absence of barriers to entry or exit of firms that benefit act as an incentive to other companies for enter the market, thereby subtracting the other customers, giving this situation until the demand curve of each firm is tangent to the average total cost, thereby ending the incentive and the entry of firms, so that long-term Companies typically set production and price with zero profit. A tool that serves companies in the market of monopolistic competition is advertising, because through it you catch new customers, not being possible through price as they often tend to converge among all companies. Price in monopolistic competition a) assess the ability to control prices. b) The relative ease of entry of new firms. c) The monopolists have advantages that other suppliers do not possess.