Per (Tse) monopolistic competition is a mix of monopoly and perfect competition. It has the following attributes:
- Many sellers competing for the same group of customers
- There IS product differentiation: each firm producers a product that is slightly different from other firms, hence they are not price takers, but instead have a degree of control over price
Examples include restaurants, clothing, hotels and electronics.
Work cited:
Tse, Harry. “Lecture-3 Equilibrium Elasticity.” 2025.
