Monopolistic Competition Chapter 17 Copyright C 2001 by Harcourt, Inc All rights reserved. Requests for permission to make copies of any part of t work should be mailed to Permissions Department, Harcourt College Publishers 6277 Sea Harbor Drive. Orlando Florida 32887-6777
Monopolistic Competition Chapter 17 Copyright © 2001 by Harcourt, Inc. All rights reserved. Requests for permission to make copies of any part of the work should be mailed to: Permissions Department, Harcourt College Publishers, 6277 Sea Harbor Drive, Orlando, Florida 32887-6777
The Four Types of Market Structure Number of firms? Many firms One firm/Few Type of Products? firms Differentiated Identical products products Monopoly oligopoly Monopolistic Perfect Competition Competitio Tap water Tennis balls Novels Wheat Cable v Crude oil Movies o Milk H arc Inc. items and derived items c ht o 2001 by Harcourt, Inc
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. The Four Types of Market Structure Monopoly Oligopoly Monopolistic Competition Perfect Competition • Tap water • Cable TV • Tennis balls • Crude oil • Novels • Movies • Wheat • Milk Number of Firms? Type of Products? Many firms One firm Few firms Differentiated products Identical products
Types of Imperfectly Competitive Markets o Monopolistic Competition o Many firms selling products that are similar but not identical ◆ Oligopoly Only a few sellers, each offering a similar or identical product to the others. H arc Inc items and derived items copyright o 2001 by Harcourt, Inc
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Types of Imperfectly Competitive Markets uMonopolistic Competition uMany firms selling products that are similar but not identical. u Oligopoly uOnly a few sellers, each offering a similar or identical product to the others
Monopolistic Competition Markets that have some features of competition and some features of monopoly Harcourt, Inc. items and derived items copyright o 2001 by Harcourt, Inc
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Monopolistic Competition Markets that have some features of competition and some features of monopoly
Attributes of Monopolistic Competition ◆ Many sellers e Product differentiation ◆ Free entry and exit H arc Inc items and derived items copyright C 2001 by Harcourt, Inc
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Attributes of Monopolistic Competition uMany sellers uProduct differentiation uFree entry and exit