ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Monopolistically competitive firms sell goods that are similar enough to be substituted for one another, but are not identical. An example of a monopolistically competitive market is the market for jeans.

Detailed explanation-2: -The market for jeans is an example of monopolistic competition.

Detailed explanation-3: -Blue jeans are produced under monopolistic competition, so their prices are higher than if they were produced under perfect competition.

Detailed explanation-4: -Why is the company that makes these jeans considered both monopolistic and competitive? a. It has a monopoly on this color, but it must compete with those who make jeans in other colors.

Detailed explanation-5: -A monopoly is the type of imperfect competition where a seller or producer captures the majority of the market share due to the lack of substitutes or competitors. A monopolistic competition is a type of imperfect competition where many sellers try to capture the market share by differentiating their products.