Principles of Microeconomics / Unit 9 MIC 0802 short lesson, about 20 seconds
Monopolistic Competition Defined
Captions available
The idea
Monopolistic competition has many firms, easy entry and exit, and differentiated products: each firm's good is a little different, so each is a small monopoly on its own variety.
In practice
Every pizza shop in town competes with every other, and none sells the same pizza.
Where people slip
Many firms and easy entry are the competitive part; differentiation is the monopoly part.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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