Question

Which of the following markets is an example of monopolistic competition?

Answer 1

The correct answer is A. Books bags. a good example of monopolistic competion is texbooks. The monopolistic competition has the next characteristics:

There are many producers and many consumers in the market. And there is no company that has control over the price.

Consumers notice there are non-price differences.

There are few barriers to entry and to exit the market.

Producers can have some control on the price.

Answer 2

the correct answer is A. book bags