The Theory of Imperfect Competition Are there any monopolistically competitive industries in the real world? Some industries may be reasonable approximations(e. g the automobile industry in Europe) The main appeal of the monopolistic competition model is not its realism, but its simplicity Copyright C 2003 Pearson Education, Inc Slide 6-17Copyright © 2003 Pearson Education, Inc. Slide 6-17 • Are there any monopolistically competitive industries in the real world? – Some industries may be reasonable approximations (e.g., the automobile industry in Europe) – The main appeal of the monopolistic competition model is not its realism, but its simplicity. The Theory of Imperfect Competition