Economics 101: Monopolistic Competition | SterlingTerrell.net

Economics 101: Monopolistic Competition

What is monopolistic competition?

Monopolistic Competition is a situation where many sellers produce and sell similar products. Their goods are similar, but are differentiated by brand, quality, price, and perception.

The best example I can think of is toothpaste.

There are many different toothpaste brands, a very similar product, but there exist differences between brands in the eyes of the customer, i.e. good marketing.