Another form of non-price competition, which a firm has to face under monopolistic competition is that the products of different firms vary. A firm, under perfect competition, does not face this problem because the product is very similar under the perfect competition. There is a trend of product variation under monopolistic competition because different firms Lave different products.
The variation in the product may refer to a change in the quality of the product itself, technical changes, a new design, better materials, it may mean new package or container, it may mean more prompt or courteous service, a different way of doing business. The quantity of product that a firm will be able to sell in the market depends on the manner in which its product is different from others. Where the possibility of discrimination exists, the sale depends on the skill with which a product is presented differently from others, and appeals to a particular group of buyers.
