ECONOMICS
COMPETITION AND MARKET STRUCTURES
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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perfect competition
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monopoly
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oligopoly
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monopolistic competition
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Detailed explanation-1: -Understanding Monopolistic Competition Restaurants, hair salons, household items, and clothing are examples of industries with monopolistic competition. Items like dish soap or hamburgers are sold, marketed, and priced by many competing companies.
Detailed explanation-2: -Clothing: The clothing industry is monopolistically competitive because firms have differentiated products and market power. Monopolistic competition is different from a monopoly.
Detailed explanation-3: -To date, the most famous United States monopolies, known largely for their historical significance, are Andrew Carnegie’s Steel Company (now U.S. Steel), John D. Rockefeller’s Standard Oil Company, and the American Tobacco Company.
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.