If Farmer McDonald expresses a desire to sell his corn at a local farmers market, he must be aware that the product is similar to other farmers and that he will have no control over the price. The market structure he is MOST likely participating in is

COMPETITION AND MARKET STRUCTURES

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

If Farmer McDonald expresses a desire to sell his corn at a local farmer’s market, he must be aware that the product is similar to other farmers and that he will have no control over the price. The market structure he is MOST likely participating in is

A	monopolistic competition
B	oligopoly
C	perfect competition
D	monopoly

Explanation:

Detailed explanation-1: -Answer: Monopolistic Competition Many firms have similar marketing strategies and recipes but McDonald’s is still unique.

Detailed explanation-2: -Fast food restaurants, hotels, gas stations, clothing stores, medical practices, legal firms, and hair salons are several industries that are monopolistically competitive, assuming they locate in areas with other companies that serve the same clientele.

Detailed explanation-3: -McDonald’s is in the quick service restaurant market.

Detailed explanation-4: -Monopolistically competitive industries are those that contain more than a few firms, each of which offers a similar but not identical product. Take fast food, for example. The fast food market is quite competitive, and yet each firm has a monopoly in its own product.

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ECONOMICS (CBSE/UGC NET)

ECONOMICS

COMPETITION AND MARKET STRUCTURES