ASSIGNMENT ON
MARKET STRUCTURE IN BANGLADESH
Course Title: Managerial Economics, Course Code: 5302
Prepared by
Mohammad Shakawat Hossain
Matric No.- R132140, Semester- 3rd section- Spring-2014

Submitted to
Mr. Monir Ahmed
Associate Professor
Faculty of business Administration, IIUC

Department of business Administration
International Islamic University Chittagong Monopolistic Competition: Monopolistic competition, is a type of imperfect competition such that many producers sell products that are differentiated from one another (e.g. by branding or quality) and hence are not perfect substitutes. In monopolistic competition, a firm takes the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms.
The firms in Bangladesh are not able to exactly differentiate their product but the pressure of various aspects such as interest rate spread and the presence of international banks make them provide the services to the customers. In this effort the banks in Bangladesh are able to create differentiated products. The basis for the differentiated products is different which another reason for is differentiated products. These are market size in the region, returns for the banks and the risks that are associated. Based on this the banks are differing their costing and in different manner. For example some banks are offering flexible rates and others are offering fixed rates for interest. The banks also vary there services based on the tenure of loans. Few banks are providing short term loans and other are providing medium and some of them come with long term loans. With different treatment being done to the non-performing assets, banks are also differing on the kind of services being offered However in order to make the market more competitive as the target of the government I here need to be