Question

Which of the following industries operates under a market structure of monopolistic competition? clothing industry agricultural industry soft drink industry utility industry

Answer 1

The clothing industry operates under a market structure of monopolistic competition.

Answer: Option A

Explanation:

Monopolistic competition in the agriculture industry is impossible to be seen because the industry hosts a plethora of products made of the same raw materials.

The same competition also can't be seen in the soft drink industry because different flavors and formulas make up distinct cold drinks. It is only in the clothing industry that monopolistic competition exists because ultimately all the clothing manufacturers produce the same product of cloth.

Answer 2

Edward Chamberlin defined the market structure monopolistic competition, which describes a market with imperfect competition characterzied with many producers who sell products that are differentiated from one another and hence are not perfect substitutes.
The following industries operates under a market structure of monopolistic competition: clothing industry and soft drink industry.