1. Date: April 24, 2013 Topic: Monopolistic Competition Aim: How does monopolistic competition exist? Do Now: Multiple Choice Questions.

2.  Beginning in the mid-1970’s Pepsi Cola launched a marketing campaign called the Pepsi Challenge. The challenge took the form of a taste test.  TODAY WE WILL TAKE THE PEPSI CHALLENGE!!

4. Monopolistic Competition  Many companies compete in an open market to sell products that are similar but not identical.  Each firm holds a monopoly over its own particular product.

7. Four Conditions of Monopolistic Competition  Many firms.  Few artificial barriers to entry.  Slight control over price.  Differentiated Products.

8. Monopolistic Competition

9. Non-price Competition  Monopolistic competition also takes the form of non-price competition.  Competition through ways other than lowering prices. I WILL FIGHT YOU IN WAYS OTHER THAN CHANGING MY PRICES!

10. NONPRICE COMPETITION STATION #1 PHYSICAL CHARACTERISTICS

11. THESE SNEAKERS LOOK BETTER AND ARE MUCH MORE COMFORTABLE, KIM!

12. NONPRICE COMPETITION STATION #2 LOCATION

13. FINALLY WATER! BUT WAIT A SECOND! THAT WATER MAY COST ME MY SPOTS! WE’RE HITTIN THE OCEAN PALACE FOR OUR SONS COLLEGE GRADUATION DINNER!

14. NONPRICE COMPETITION STATION #3 SERVICE LEVEL

15. I CAN JUST SIT IN MY CAR AND THEY BRING ME FOOD! THE SERVICE USED TO BE SO MUCH BETTER HERE!

16. NONPRICE COMPETITION STATION #4 ADVERTISING, IMAGE, AND STATUS

17. HEY, WHAT GREEN SHIRT DO YOU WANT TO BUY? YO! THAT HILFIGER SHIRT IS MAD NICE. IT SAYS HILFIGER ON IT.

18. Oligopoly  Market dominated by a few large profitable firms.  Ex: airlines and gas companies.

20.  Summary activity – Answer the Aim. How does monopolistic competition exist? YES, THIS WILL BE COLLECTED.