Monopolistic competitive markets
What are examples of monopolistically competitive firms in your local area? Please make sure to relate your examples to the characteristics of the markets. Why is advertising/marketing, so important in this particular market?
The definition of monopolistic competition is “a market structure in which many firms sell products that are similar but not identical.” (Mankiw) Monopolistically competitive markets have many sellers, with Mankiw stating a monopolistically competitive market must have; many sellers, slightly different products, free entry and exit. In my growing town of Bowling Green it is no mystery that we are known for food and over 300 restaurants, some just alike but most different in some way. I believe in our town the pizza places are in a monopolistic competitive market, certain pizza places are high end and low end, some carry out only, with others being dine and with a beer. All the pizza places have pizza’s that are different in taste, and variety, but with so many options in bowling green already advertising and marketing is extremely important. Lost River Pizza is an upscale pizza restaurant with large screen tv’s for those big sports days and big list of local beers and liquors, but the pizza menu is different than most with brisket, margarita, wild boar, and meatball topping the list. While Mellow Mushroom is another upscale pizza joint with outside seating, fireplaces, live music and a hipster vibe inside. Local beer with different options is offered with another pizza menu that includes curry chicken pizza, Shiitake, button and Portobello mushrooms pizza, and grilled shrimp and Andouille sausage pizza along with the same as every other pizza place with cheese, veggie, and pepperoni. Each of these two places are differences and similarities with their menu, the atmosphere, and pricing with both being a lot more expensive than your papa johns and pizza hut. There is free entry and exit into this...
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