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The Link between Monopolistic Competition and Normal Profits
Introduction
Monopolistic Competition is a market structure close to perfect代写留学生论文competition market, boasting the some feature of both perfect competition and monopoly, with some monopolistic factors and more competitive factors. Producers mainly specialize in groceries, foods, retail, handcrafts and so on. This essay analyzes the equilibrium of monopolistically competitive market and the link of it between normal profits.
Diagram Analysis of Monopolistically Competitive Market Structure
A. Features
There are some obvious features of Monopolistic Competition as follows:
i) Products of each producer have difference from others, while the difference is not too much: this character leads to monopoly exiting to some extent. However, there are also some substitutive factors among those different products. Take fashion industry for example. Differet brands of coats have maybe different color, fabric or style. But they are still coats any way, they have the same function.
ii) Most of produces play influential role in the market, while they could not collaborate with others to control price. For example, some PC corporations such as Lenovo, HP, IBM, acer etc are famous in the market. But they are price-takers.
iii) Producers make decision independently, while they have no vision of the affects caused by their behaviors.
iv) Market access is very easy. So a producer may decide to enter or exit some a industry. For instance, the cellphone market in china is a monopolistically competitive market. There are a lot of great corporation such as Nokia, Sumsong, Lenovo etc, but also thousands of small companies which are in or out in the market every year.
B. Demand Curve of Producer of Monopolistically competitive market

References
Yuewei Zhang (2006).Theoretic and Practical Analysis of the Monopolistic https://www.51lunwen.org/StudentPapers.htmlCompetition. Journal of Huanggang Normal University. China
Paul A. Samuelson, William Nordhaus (2004). Economics,17th Edition. McGraw-Hill. US
Ping Xinqiao (2004).Microeconomics 18 Stresses. Peking University Press. China