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monopolistic competition - Google Search

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What is ' Monopolistic Competition' Characterizes an industry in which many firms offer products or services that are similar, but not perfect substitutes. Barriers to entry and exit in the industry are low, and the decisions of any one firm do not directly affect those of its competitors.

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Defined as a market structure that does NOT conform to pure competition, products are not homogeneous - they are differentiated.

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Producing fruit and nuts, sold at local farm markets.

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What do all these small businesses have in common???

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What do all these small businesses have in common???

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Monopolilstic Competition!! They are all local, small family-owned businesses that want to differentiate and market their products to increase profitability.

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All kinds of nuts and candies sold exclusively online or at farm markets!

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Another small family-owned dairy in Modesto. Tasty milk in real glass bottles

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1. Many smaller firms - small businesses like Stuyt Dairy Gouda Cheese
2. Differentiated or "Branded" products
3. Still face competition from the "Big guys"
4. Allows greater profit opportunities in the short run.

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A small family-owned dairy in Escalon that makes great Gouda cheese