3.4.3 Monopolistic Competition (Edexcel A-Level Economics Teaching PowerPoint)

This editable and downloadable powerpoint covers Monopolistic Competition.

Monopolistic competition is like the rebellious cousin of perfect competition - it's got some similar traits, but with a twist:

• Many firms, but not as many as in perfect competition.
• Products are similar, but not identical - they have some differentiation, like branding or slight differences in features.
• Firms have some control over price, but not as much as in a pure monopoly.
• Entry and exit are somewhat easier than in monopolies, but not as easy as in perfect competition.

Product differentiation can come in many forms, but here are a few common examples:

• Branding and marketing: Companies can differentiate their products through branding and advertising, making them more attractive to consumers. Think of Nike's swoosh logo and "Just Do It" slogan, or Apple's sleek design and focus on user experience.
• Product features: Adding features to a product can make it stand out from competitors. For example, Tesla's electric cars have unique features like self-driving capabilities and a large touch screen display.
• Quality: Higher quality can be a differentiator.