Economics Year 13 revision Day 8 - Monopolistic Competition

On day 8 of the Year 13 Recap we revisit the market structure of monopolistic competition and assess the welfare implications of this market structure.

The market structure of monopolistic competition fits in between the theory of perfect competition and monopolies.

This means that any firm that competes within this market structure is likely to enjoy some of the benefits of a monopoly but also adhere to the some of the competitive constraints under perfect competition. This market structure is often more popular than you may think as it often applies to independent retailers, restaurants and cafes on the high street.

Here Jacob takes you through the revision slide on monopolistic competition: