Monopolistic Competition
📈 Investing
intermediate

Quick Definition

Monopolistic competition is a market structure where many firms sell products that are similar but not identical, allowing for significant differentiation and some degree of market power.

Examples

  • 1Restaurants in a city offering different cuisines and dining experiences.
  • 2Clothing brands that differentiate based on style, quality, or target demographic.
  • 3Smartphone manufacturers that offer devices with unique features and design aesthetics.

Tags

economicsmarket-structurecompetitionbusiness-strategyproduct-differentiation