There is no industry demand and supply graph for Monopolistic Competition. Such a graph would make no sense because each firm sells a slightly different product. Indeed, one of the problems faced by economists who study industry structure in detail is determining the boundaries of an industry, that is, exactly which products and/or services should be considered part of the same industry.

   For example, are all of these in the same industry? The expensive French restaurant at which it is impossible to dine for less than $200 per person, the neighborhood Italian restaurant where a typical dinner is $20 per person, the diner where meals rarely run over $5, and the hot dog vendor pushing a hand cart.

Copyright © 1995-2004, Inc. - All Rights Reserved