H 1" 4.8 Study the extract below and answer the questions that follow. MONOPOLISTIC COMPETITION Monopolistic competition as a market structure was first identified in the 1930s by the economist Edward Chamberlin. Many small businesses operate under conditions of monopolistic competition, including independently owned and operated high-street stores and restaurants. In the case of restaurants, each one offers something different and possess an element of uniqueness , but all are essentially competing for the same customers. (Adapted from: www.economicsonline.co.uk 4.8.1 Give an example of a business operating in a monopolistic market in South Africa. 4.8.4 What makes monopolistic competition to differ from a perfect competitor? 4.8.5 How can restaurants use different strategies to attract more customers? 4.8.2 Identify from the above extract ONE characteristic of monopolistic competition (1) 4.8.3 Briefly describe the term monopolistic competition. (1) € (2) (2) (4) [10]
