What is Foolsaurus?

It's a glossary of investing terms edited and maintained by our analysts, writers and YOU, our Foolish community. Get Started Now!


Monopolistic competition

In economics, monopolistic competition is a market type in which many firms compete by selling similar, but slightly different products.

Contents

Expanded Definition

Think soft drinks. Many types, differing only in flavor and packaging, of what is, essentially, flavored, carbonated, sweetened water.

Firms in this market spend a lot of money on advertising, trying to impress the differences of their products upon the buyers and building the brand.

Related Fool Articles

Related Community Blogs

Related Terms

Recent Mentions on Fool.com

Advertisement