3 Provide some examples of industries near your university that operate in monopolistic competition (excluding those in the figure above). Figure 1 in Economics in Action above shows 10 examples of industries in Europe in which firms operate in monopolistic competition. These industries have a large number of firms, they produce differentiated products, and they compete on quality, price and marketing.

In the most concentrated of these industries, computer manufacture, the largest 5 firms produce 59 per cent of industry output and the largest 10 firms produce 73 per cent of industry output. In the least concentrated of these industries, meat products, the largest 5 firms produce only 12 per cent of industry output and the largest 10 firms produce 17 per cent of industry output.