Which of the following markets is an example of monopolistic competition?
2 answers:
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.
the correct answer is A. book bags
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