Monopolistic Competition Definition: Monopolistic competition is the market structure where a large number of firms that produce differentiated products which are close substitutes for each other. In other words, large sellers selling the products that are similar, but not identical and compete with each other on other factors besides price The monopolistic competition combines elements of both monopoly and competition. Since each firm sells a differentiated product, it has some control over the price at which it sells its output.

1. Monopolistic Competition
Unit 23
Instructor:
Atta Hussain Syed

2. Objective
Features of Monopolistic Market
Market Structure
Monopolistic Competition
Examples of Monopolistic Market

3. Market structure
 Market structure is the interconnected characteristics of a market,
such as the number and relative strength of buyers and sellers,
degree of freedom in determining the price, level and forms of
competition, extent of product differentiation and ease of entry into
and exit from the market

4. Monopolistic Competition
 Definition: Monopolistic competition is the market structure
where a large number of firms that produce differentiated products
which are close substitutes for each other.
 In other words, large sellers selling the products that are similar, but
not identical and compete with each other on other factors besides
price
 Monopolistic competition combines elements of both
monopoly and competition. Since each firm sell a
differentiated product, it has some control over the price at
which it sells its output.

5. Monopolistic
Competition
Large Number
of Firms
Free Entry &
Exit
Some Control
Over Price
Heavy
Expenditure on
Advertisements
Product
Differentiation
Features of Monopolistic Competition
Product
Variation

6. Restaurants
Fast Food
Company
Retail
Industry
3 Real-world Examples of Monopolistic
Competition