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Rama09 [41]
3 years ago
9

A monopolistically competitive market A. is imperfectly competitive, and all imperfectly competitive markets are monopolisticall

y competitive. B. is imperfectly competitive, whereas an oligopolistic market is not imperfectly competitive. C. is not imperfectly competitive. D. is imperfectly competitive, but not all imperfectly competitive markets are monopolistically competitive.
Business
2 answers:
Vlad1618 [11]3 years ago
5 0

Answer:

B

Explanation:

To answer this question properly, a grasp of what is meant by the technical terms is needed. Firstly we need to understand what a monopolistically competitive market is. In its simplest term, it is a type of market in which many firms sell similar products that are not identical.

This type of market is one that we can tag as imperfectly competitive. It is imperfectly competitive because the products are only similar, they are not identical. The products would have been perfectly competitive if they had been identical which of course is not the case here. Hence, we can say that a monopolistically competitive market lacks the features that would have make it be a perfect competitive market.

Now we said an oligopolistic market is not imperfectly competitive. This means we agree to the fact that it is perfectly competitive. In an oligopolistic market, there are a number of firms such that on one firm can keep the other firm from having a significant influence in the market. Hence, simply because a firm would affect the market to a particular extent, we can see that there exists a kind of perfect competition amongst the firms, as each of the firms in the market to an extent have a leverage over the market and cannot be stopped from wielding its influence

Gala2k [10]3 years ago
4 0

Answer:

D. is imperfectly competitive, but not all imperfectly competitive markets are monopolistically competitive.

Explanation:

Monopolistic competition may be seen as a variety of competition that determine the characteristics of variety of industries that are familiar to consumers in their day-to-day lives. For instance, restaurants, hair salons, clothing, and consumer electronics are all monopolistic competitive market but not all imperfectly competitive markets are monopolistically competitive.

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