1. <============================================  Perfect Competition MonopolyOligopoly MONOPOLISTIC COMPETITION Pure Free Market No Competition Market Structure Continuum

2. Monopolistic Competition: Has one characteristic of monopoly & some characteristics of perfect competition Examples: Restaurants, furniture, haircuts The most common U.S. Market Structure

3. Monopolistic Competition: How it is similar to perfect competition Many Sellers Many close substitutes Relative ease of entry into/exit from the industry

4. Monopolistic Competition: How it is similar to Monopoly “Uniqueness” of product— each firm has a “mini- monopoly” of its product Product Differentiation: Sellers try to set apart their product from competitors in various ways: Unique packaging Creating a reputation for their product through advertising Local furniture commercial Flea market

5. Possible Haircut Options Razor’s Edge Creative Hair Designs Star Barber Shop Luau’s Salon of Beauty Guy’s & Gal’s Hair Styling

6. Other Examples of Monopolistically Competitive Industries Fast food Car dealerships Gas stations Clothing stores Legal services Tourism Financial consulting services