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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oligopoly
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perfectly competitive
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monopolistically competitive
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Detailed explanation-1: -The market for jeans is an example of monopolistic competition.
Detailed explanation-2: -In monopolistic competition, many companies compete in a open market to sell products that are similar but not identical. Examples: jeans, bread (loaf), shoes, drinks, etc.
Detailed explanation-3: -Clothing: The clothing industry is monopolistically competitive because firms have differentiated products and market power. Monopolistic competition is different from a monopoly.
Detailed explanation-4: -What Is Monopolistic Competition? Monopolistic competition exists when many companies offer competing products or services that are similar, but not perfect, substitutes. The barriers to entry in a monopolistic competitive industry are low, and the decisions of any one firm do not directly affect its competitors.