Monopolistic competition
Definition
A market structure in which many firms sell similar but not identical products, giving each firm some control over its price through product differentiation. Companies compete on brand, quality, and features rather than price alone.
Examples
- Fast-food restaurants like McDonald's, Burger King, and Wendy's selling similar but branded products
- Different brands of running shoes (Nike, Adidas, New Balance) competing through design and marketing
- Local coffee shops differentiating themselves through atmosphere, specialty drinks, and location
Study This Concept
Practice monopolistic competition with free review games in these units: