Monopolistic competition is present in restaurants such as Burger King and McDonald's, both of which are fast food chains that target a similar market and offer similar products and services. There are several brands if you are looking for running shoes, such as Adidas, ASICS, Nike, etc. The market for running shoes seems to be in full competition, on the one hand, since there are many brands present that compete with each other, since there are few barriers to entry and exit. However, the market for running shoes seems to be under a monopolistic structure, on the other hand, because the uniqueness offered by each of the shoe brands gives them the possibility of charging a different price than other competitors.
Companies can increase some of the functions of their products and charge the consumer accordingly for the new function. If the consumer believes that the new feature is worth its price, they would not buy it otherwise. Companies that participate in monopolistic competition emphasize “having no price differences” to promote their products, such as the support of NBA superstars. Los Angeles Lakers superstar Kobe Bryant supports and dresses Nike, while Orlando Magic superstar Dwight Howard supports and dresses Adidas.
The restaurant industry (monopolistically competitive throughout the country) provides an example of a monopolistically competitive market.
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