ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a market that sells products that are exactly the same
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a market structure in which many companies sell products that are similar, but not identical.
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Either A or B
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None of the above
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Detailed explanation-1: -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.
Detailed explanation-2: -Monopolistic competition is a type of market structure where many companies are present in an industry, and they produce similar but differentiated products. None of the companies enjoy a monopoly, and each company operates independently without regard to the actions of other companies.
Detailed explanation-3: -Monopolistic competition In monopolistic competition, there are many sellers in the market. Sellers sell products that are similar but not identical. Products could be close substitutes. Examples are apartments, books, bottled water, clothing, fast food, night clubs, etc.
Detailed explanation-4: -Monopolistic competition is a competition where there is a large number of sellers selling closely related but not homogeneous products. Group equilibrium represents the price and output of the organizations having close substitutes. Hence, monopolistic competition is also referred to as group equilibrium.
Detailed explanation-5: -A. Monopolistic competition is a market structure characterized by a large number of firms selling products that are close substitutes yet different enough that each firm’s demand curve slopes downward. 4. 3. Firms in monopolistic competition and perfect competition typically.