ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Monopoly
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Perfect Competition
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Monopolistic Competition
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Oligopoly
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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: -The theory was developed almost simultaneously by the American economist Edward Hastings Chamberlin in his Theory of Monopolistic Competition (1933) and by the British economist Joan Robinson in her Economics of Imperfect Competition (1933).
Detailed explanation-3: -Example #1 – Coffee Shops or Houses or Chains. A Large number of sellers. Product is Similar but not Identical. Example #2 – Farmers. A Large Number of Sellers. Product is Similar but not Identical. Example #3 – Retail Industry. A Large Number of Sellers. Product Differentiation.