It's important to make one quick point about the types of markets we've been looking. Perfect Competition andMonopolies are both very rare.Some would arguePerfectly Competitive industries don't exist. This is why I asked you previously to give me examples of companies or industries thatcloselyresemble the different types of market structures. These two were the extremes that outline the situations that should unfold in industries that have an extremely high amount of competition versus those that have zero competition. If we visualized theme on a spectrum it would be something like this...

Most Competition <----------------------> Zero Competition Perfectly Competitive Monopoly

Monopolistic Competition is different. It is a blend of both of the extremes which gives us a much more realistic (and more common) situation.

• Give an example of a company (or industry) that would be consideredMonopolistically Competitive.
• Where would it fall on the spectrum above?
• Compared to both Perfect Competition and Monopoly, describe the Long Run outcomes. Compare things such as...
  • Price
  • Quantity of Production
  • Profits
  • Efficiency