Thursday, April 26, 2012

Nice graphic illustrating the web of firms in a Monopolistically Competitive Market. Look for your favorite brand(s)...

In AP Microeconomics we study market structures.  The graphic below is a nice illustration of firms that compete in a Monopolistically Competitive market, or as I like to call it "The NASCAR Market"---look at a NASCAR race car (and the driver) and you will see most of the logos below.

Monopolistically competitive firms MUST advertise heavily and differentiate their products in order to gain/maintain market share.  While the firms are relatively few in number they are highly competitive and have to offer a quality product at a competitive price. 
Source: Chart Porn
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