Monopolistic Competition
📈 Investing
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
Related Terms
Other terms you might find helpful
Oligopoly
An oligopoly is a market structure characterized by a small number of firms that dominate the market, leading to limited competition.
Perfect Competition
Perfect competition is a market structure where numerous small firms compete against each other, and none can influence market prices due to their size.
Quick Info
Category:Investing
Difficulty:intermediate
Last Updated:6/19/2025