ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Textbook examples of industries with market structures similar to monopolistic competition include restaurants, cereal, clothing, shoes, and service industries in large cities. Clothing: The clothing industry is monopolistically competitive because firms have differentiated products and market power.

Detailed explanation-2: -The demand curve as faced by a monopolistic competitor is not flat, but rather downward-sloping, meaning that the monopolistic competitor, like the monopoly, can raise its price without losing all of its customers or lower its price and gain more customers.

Detailed explanation-3: -3 Examples of Monopolistic Competition 1. Grocery stores: Grocery stores exist within a monopolistic market as there are a large number of firms that sell many of the same goods but with distinct branding and marketing. 2. Hotels: Hotels offer a prime example of monopolistic competition.

Detailed explanation-4: -What Type of Market Structure is the Clothing Industry? Firms in the clothing industry have differentiated products and market power, making the industry monopolistically competitive.