Monopolistic Competition

Group Members:
Rickel Rowe- 1807234
Denzar Forbes- 1903495
 OBJECTIVES
Throughout this presentation you we will cover:

• Monopolistic Competition

• The characteristics of Monopolistic Competition

• Advantages and Disadvantages of Monopolistic Competition

• Examples of Monopolistic Competition

 What is Monopolistic Competition
In monopolistic competition, we
still have many sellers (as we had
under perfect competition). Now,
however, they don’t sell identical
products. Instead, they
sell differentiated products—
products that differ somewhat, or
are perceived to differ, even though
they serve a similar purpose.
Products can be differentiated in a
number of ways, including quality,
style, convenience, location, and
brand name.
 Examples of Monopolistic Competition
• Grocery stores

•  Hotels

• Clothing stores

• Fast Food Restaurants

Characteristics of Monopolistic Competition
• A large number of firms

•  Product differentiation

• Low barriers to entry and

exit

• Pricing
 Advantages of Monopolistic Competition
• Consistent quality of
products or services

•  Multiple choices for

consumers

• Decision-making power
 Disadvantages of Monopolistic Competition

• Inefficiency

•  Long-term normal profit

•  Waste
Local Examples of Monopolistic Competition

vs vs

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 Questions and
Answer Segment