Monopolistic Competition (Online Lesson)

In this online lesson,we cover the market structure of monopolistic competition, a type of imperfect competition.

WHAT YOU'LL STUDY IN THIS ONLINE LESSON

• the characteristics and nature of monopolistic competition, and its place in the spectrum of competition
• diagrammatic analysis of monopolistic competition in the short run and the long run, considering output and profits
• real-world examples of monopolistic competition
• advantages and disadvantages of monopolistic competition

Additional teacher guidance is available at the end of this online lesson. Thank you to Penny Brooks and Jon Clark for their contributions to this online lesson.

HOW TO USE THIS ONLINE LESSON

Follow along in order of the activities shown below. Most are based on short videos, including activities for you to think about and try at home, as well as some extra worksheet-based activities.

ACTIVITY 1: VIDEO - NATURE OF MONOPOLISTIC COMPETITION

In this introductory video, we consider the characteristics and assumptions underpinning the market structure of monopolistic competition.

ACTIVITY 2: GAME - MARKET STRUCTURES

Review your knowledge of the different market structures by having a go at this interactive game!

ACTIVITY 3: VIDEO - DIAGRAMMATIC ANALYSIS

In this video, we look at the diagrams needed for both short run and long run analysis of monopolistic competition. It is well worth practising the long run diagram!

ACTIVITY 4: RESEARCH TASK

Carry out your own research into the economist Joan Robinson, who first developed the theory of monopolistic competition. You can find some sources to get you started here:

• biography of Joan Robinson
• a more economics-focused biography of Joan Robinson
• a thought-provoking blog about her legacy

Produce a creative piece (e.g. comic, storyboard, podcast etc) about this economist's contribution to this topic.

ACTIVITY 5: VIDEO - REAL WORLD EVALUATION

This video uses a range of real-world examples to explore the pros and cons of monopolistic competition.

ACTIVITY 6: WRITING SKILLS

Download this DynaMIX activity which helps to build your analytical skills.

ADDITIONAL TEACHER GUIDANCE

This lessons comprises:

• just over 30 minutes of guided video content, spread across 3 videos, including around 20-30 minutes of student thinking and activity time
• a research task on Joan Robinson
• an interactive game reviewing the key characteristics of market structures