Monopolistic Competition Chapter 17
Monopolistic Competition Chapter 17
The Four Types of Market structure Number of firms? Many firms One firm/Few Type of Products? firms Differentiated Identical products products Monopoly oligopoly Monopolistic Perfect Competition Competition e Tap water e Tennis balls ● Novels Wheat e Cable Tv Crude oil Movies
The Four Types of Market Structure Monopoly Oligopoly Monopolistic Competition Perfect Competition • Tap water • Cable TV • Tennis balls • Crude oil • Novels • Movies • Wheat • Milk Number of Firms? Type of Products? Many firms One firm Few firms Differentiated products Identical products
Types of Imperfectly Competitive Markets Monopolistic Competition Many firms selling products that are similar but not identical ● Oligopoly Only a few sellers, each offering a similar or identical product to the others
Types of Imperfectly Competitive Markets • Monopolistic Competition – Many firms selling products that are similar but not identical. • Oligopoly – Only a few sellers, each offering a similar or identical product to the others
Monopolistic Competition Markets that have some features of competition and some features of monopoly
Monopolistic Competition • Markets that have some features of competition and some features of monopoly
Attributes of monopolistic Competition ° Many sellers Product differentiation o Free entry and exit
Attributes of Monopolistic Competition • Many sellers • Product differentiation • Free entry and exit