GK
BUSINESS ECONOMICS
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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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perfect competition
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monopolistic competition
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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: -Why is the company that makes these jeans considered both monopolistic and competitive? B. It has a monopoly on its own design, but it must compete with other makers of jeans.
Detailed explanation-3: -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.