Monopolistic Competition sounds like some sort of hybrid of Monopoly and Perfect Competition, and in a way it is. Monopolistically competitive industries are quite common and do combine features of both.

    Examples are very common especially in larger cities and usually include: restaurants, night clubs, bars, auto mechanics, doctors, appliance repair, house painters, plumbers etc. Much of the service sector in the US is monopolistically competitive.

    Such firms are "monopolistic" in that they offer products, features, or locations that are slightly different from those of their competitors. The are "competitive" in that, like in perfect competition, there are very many such firms.

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