... firm helps to widen the choice of products for customers and it also helps lower price. There are essentially two types of monopolistic competition with differentiated products and free entry and exit; non-address and address/location models. The non-address or representative consumer model means that all firms are producing differentiated products but are targeting the same customers. The address or location model shows that some customers prefer products with certain characteristics or products that are sold by firms that are located close to them. Customers in this model are willing to Pay a premium for these preferred products and may not generally care about the price of some other goods in the market. These models differ in the type of demand that they face. In the non-address model demand varies almost continuously with the prices of all firms. In the location model demand for brands maybe independent from other products' prices ...

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