explain the independent price policy of monopolistic market...

Dear Student, Under monopolistic market every firm has got its own price policy. If a firm changes the price of his product, it has not much effect over the price of the commodity because other firms do not change the price accordingly. Further, the numbers of firms are more, so the change has got negligible effect. For example, a product A is for Rs. 10 in market and one firm reduces it's price to Rs. 8 then, it is not necessary that other firms also decreases price of their products.. Regards

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