in monopolistic competition why is there is lack of mobility in factor of production , product and services
Hey Vani,
In monopolistic competition, there is lack of mobility in factor of production, product and services. This is because of the fact that firms under monopolistic competition produce differentiated products. Since workers attain specialisation in the manufacturing of the product which is produced by them in a particular firm. Thus, moving to other firms become difficult for them as the product of one firm is differentiated from the product of the other firm and they do not know how to produce the products of other firms. Hence, there is lack of mobility in monopolistic competition.
In monopolistic competition, there is lack of mobility in factor of production, product and services. This is because of the fact that firms under monopolistic competition produce differentiated products. Since workers attain specialisation in the manufacturing of the product which is produced by them in a particular firm. Thus, moving to other firms become difficult for them as the product of one firm is differentiated from the product of the other firm and they do not know how to produce the products of other firms. Hence, there is lack of mobility in monopolistic competition.