Up to now, we have talked about two types of market models: in the case of pure competition, there were a lot of firms all competing with each other; in the case of monopoly, one firm controlled the entire industry. This week, we are going to start thinking about those cases in between. We will allow firms to have a little bit of market power, but they still have to compete with other firms for customers.

To get an idea of a market with monopolistic competition, think about your decision about where to go out to eat for dinner. If you want to eat a hamburger, there are so many options to consider: Whataburger, McDonald's, Burger King, Five Guys, Fuddruckers, Smashburger, ...

Yes, it's true that these places all serve hamburgers, but they aren't all exactly the same. Some are flame-grilled, others are broiled, some offer different toppings, and others use higher-quality meats. Each company has to go out of their way to distinguish themselves in a crowded field.

In markets with monopolistic competition, you often find companies using creative ways to compete with each other and attract customers. In your response below, identify an industry that fits the description of a monopolistically competitive market and explain how firms in that industry differentiate their products by using one or more of the following techniques:

• differences in physical or qualitative attributes
• offering higher-quality service or amenities
• more convenient locations
• branding and image