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  • In a monopolistically competitive market, products are very similar and sole proprietorships must specialize or offer something that differentiates them from the competition
  • At my restaraunt, I specialize in seafood.
  • At my restaraunt, I offer customers a musical performance by a live band while they eat.
  • In a perfectly competitive market, sole proprietorships can thrive due to the low cost of entry and little difference in products offered.
  • Both of us grow and sell tomatoes at our farmers market, and due to us both offering very similar products, the only thing that will determine our success are the prices we charge and consumer demand
  • A company in a monopoly control all production of a specific product or service, and are free to charge as much as they want
  • Our company controls all the production of a special camera lens, and we can charge as much as we want to since no one else can compete witjh us
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