ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Clothing: The clothing industry is monopolistically competitive because firms have differentiated products and market power. Monopolistic competition is different from a monopoly.

Detailed explanation-2: -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-3: -Hairdressing is also a good example of monopolistic competition. Salon and barbershop owners acquire a reputation based on the services they offer. Those with exceptional services usually build a good reputation, which attracts customers to their shops.

Detailed explanation-4: -(ii) Producers of bathing soaps of various brands such as Lux, Breeze, Palmolive, Hamam, Jai, Godrej, Dove etc. are examples of monopolistic competition. Q. Give two examples of monopolistically competitive markets.