This means that once the transfer agents at the bank medallion stamp the bond, it is highly liquid on the second market. Thus, a bond is a form of loan or IOU: the holder of the bond is the lender (creditor), the issuer of the bond is the borrower (debtor), and the coupon is the interest. Bonds provide the borrower with external funds to finance long-term investments, or, in the case of government bonds, to finance current expenditure.
Chamberlainâs monopolistic competition is the blending of competition and monopoly. The most distinguishing feature of monopolistic competition is that the products of various firms are not identical but different although they are close substitutes for each other.
Nike is a monopolistic competition because they have the aspects that a perfect competition has, except their products are not exactly like their competitors such as Adidas and Under Armour. Characteristics of Monopolistic Competition. Monopolistic competition is characterized by product differentiation. market structure with only one seller of a particular product. Types of Monopolies. U.S. Postal Services. This would be considered a monopoly because they are the only deliverer of mail in the United States.