Monopolistic competition is when a market has many sellers, each of whom has a unique product to sell. As the name suggests, the market is like competition, because there are many sellers. But it is also like a monopoly, because no two sellers offer the same good. Restaurants are an example of monopolistic competition. A city has many restaurants, and entry and exit is frequent. But all restaurants differ, and do so along various dimensions, including location and the style and quality of food served.
- Live Long and Prosper: Planning for a Social Security ShortfallThe recent release of the annual Trustees Report for Social Security has people fretting over the future of federal retirement benefits. By 2033, the Social Security program will not collect enough in payroll taxes to fully cover the estimated benefits it will pay out in a given year. Basically, that means less money in your pocket. The good news is that knowledge is power – the more you know, the better prepared you can be financially.