MONOPOLISTIC COMPETITION

MICROECONOMICS

Introduction

I hope all of you are familiar with Perfect Competition and Monopoly market structures. But if I ask you, to identify market forms that your mother or you are visiting everyday such as vegetable market or grocery market, then you will be finding it difficult to identify that markets under perfect competition and monopoly’ s real examples. Why because these market structures are not existing in the real world.

Perfect Competition is the market structure where there are millions of buyers and sellers and product are homogeneous or same.

Pure Monopoly is the market where single seller is controlling entire supply and many buyers are existing to buy that product.

But these two are imaginary market structures which are developed for building base of economic theory. Perfect competition and monopoly are polar opposite market forms.

Mr .Chamberlin and Mrs.Joan Robinson are two economists who popularised the concept of Monopolistic Competition. This market structure is the most realistic market in the world.

Which bathing soap are you using? Lux, Hamam, Sandur, Pears, Why you prefer only LUX? That answers are clear at the end of this lesson.

	Learning Objectives
After reading this chapter, you are expected to learn about:

Nature and Scope of Economics

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Case Study

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Results

Key Terms

Extension exercise

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References and Bibliography

Further Readings