monopoly vs monopolistic competition

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This is a graded exercise. Please make sure to follow the instructions carefully, as an evaluator will be giving you feedback on your submission. You must submit your report as a file.

  • Think of a product you use on a daily basis that is produced from a firm in a monopoly market structure.
  • Compare this product and a product from a monopolistic competition market structure.
  • For the monopolistic competition product, you can use the product you identified in the first exercise, but describe the product again so your evaluators know what it is.

Now, answer the following questions in a 1-2 page comparative essay:

How are these two products advertised?
How does advertising affect price and market share?
Why is advertising so critical in monopolistic competition versus a monopoly?

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