ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Monopolistic competition exists when many companies offer competitive products or services that are similar, but not exact, substitutes. Hair salons and clothing are examples of industries with monopolistic competition.

Detailed explanation-2: -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-3: -Oligopoly: An Overview. A monopoly and an oligopoly are market structures that exist when there is imperfect competition. A monopoly is when a single company produces goods with no close substitute, while an oligopoly is when a small number of relatively large companies produce similar, but slightly different goods.

Detailed explanation-4: -Oligopoly arises when a small number of large firms have all or most of the sales in an industry. Examples of oligopoly abound and include the auto industry, cable television, and commercial air travel.