ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A Monopoly
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An Oligopoly
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Monopolistic Competition
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Perfect Competition
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Detailed explanation-1: -Monopolistic competition occurs when many companies offer products that are similar but not identical. Firms in monopolistic competition differentiate their products through pricing and marketing strategies.
Detailed explanation-2: -Under monopolistic competition, many sellers offer differentiated products-products that differ slightly but serve similar purposes. By making consumers aware of product differences, sellers exert some control over price.
Detailed explanation-3: -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-4: -The three types of product differentiation are vertical, horizontal, and mixed.
Detailed explanation-5: -Example #1 – Coffee Shops or Houses or Chains. A Large number of sellers. Product is Similar but not Identical. Example #2 – Farmers. A Large Number of Sellers. Product is Similar but not Identical. Example #3 – Retail Industry. A Large Number of Sellers. Product Differentiation.