Microeconomics › Section J · Monopolistic competition and oligopoly › Topic J.1
Monopolistic competition
Most markets you actually visit - restaurants, salons, clothing brands, cafés - belong to neither of the course's two poles. Many rivals compete, but each sells something a little different, so each has a sliver of price power. The result is a market that acts like monopoly in the short run and like competition in the long run.
In this topic
- The structure between the poles
- How differentiation bends demand
- The short run: a small monopolist
- Worked example: from profit to tangency
- The tangency equilibrium
- Excess capacity: the price of variety
- Worked example: judging a café street
- Advertising and branding
- The three structures, side by side
- Common mistakes to avoid
- Key takeaways
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