Monopolistic Competition and the U.S. Economy-There are a smaller number of oligopoly markets in the domestic economy with only a small number of market approximating (but not meeting) the conditions for perfect competition. All monopoly markets are illegal under U.S. federal anti-trust law with only natural monopolies such as water and sewer service permitted by the federal government. Why do you think monopolistically competitive markets are so pervasive in the U.S. economy as opposed to some other market structure? What is an example of a country’s economy which is not dominated by monopolistically competitive?

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