Monopoly and monopolistic competition

Monopoly refers to a market structure where there is a single seller/producer of a product which does not have close substitutes e.g. Uganda National Examination Board (UNEB), UMEME

Monopolistic competitions is a market where many companies offer competing products or services that are similar, but not perfect, substitutes.

Or

Monopolistic competition is a type of imperfect competition such that there are many producers competing against each other, but selling products that are differentiated from one another and hence are not perfect substitutes.

Examples of monopolistic competition

1. Grocery stores: Grocery stores exist within a monopolistic market as there are a large number of firms that sell many of the same goods but with distinct branding and marketing.
2. Hotels and pub: Hotels offer a prime example of monopolistic competition. Each hotel company offers a similar service with slight variations in pricing and quality levels.
3. Clothing stores: Another example of a large number of firms competing for market share, general clothing stores offer differentiated products that are typically very similar.

Consumer services, such as hairdressing.