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April 19, 2024

Monopolistically Competitive Markets

Applied Sciences

Monopolistically Competitive Markets

Your work on this assignment should be individual and original. Any indication that you have copied materials from another source or consulted classmates or others in composing your answers will result in a zero for all parties involved.

1. Identify a business in a monopolistically competitive industry with which you regularly transact. What makes this industry “monopolistically competitive”? (15 points)

2. Identify 2 to 3 of the business’s primary competitors. (10 points)

3. Choose an item (product or service) you regularly purchase and compare the prices at the business you frequent with the prices of its competitors for the same (or very similar) items. (Be as consistent as possible in comparing items across businesses.) (10 points)

4. Explain any differences in price in terms of the advantages offered by the store/business offering the higher priced item. (Keep in mind all of the differences that distinguish monopolistically competitive firms.) (15 points)

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