Act V · Different Stages · Module 15

The Main Street

Monopolistic competition

11 slides · Hubbard & O'Brien, chapter 13.

The story

Where this fits in Marginal Falls

Main Street has many businesses, but they are not identical. Moonlit Mocha can retain some customers after raising its price because people value its coffee, atmosphere, or location. Differentiation introduces market power alongside competition and entry.

A question to take into class

How can Moonlit Mocha have some market power while still facing many competitors?

Lecture slides

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From the slides to the classroom

Activities used in this module

Monopolistic competition

Differentiate for Donations

Create a distinctive charity name and slogan and examine the role of differentiation.

Open activity

Activities open at marginalfalls.com. Students join using the room code supplied by their instructor.