Question

What is the market structure for housing? and why?

Answer 1

There are huundreds of big and small housing companies in US and this is a monopolistic competitive market, this is because all the goods sold in the market are slightly different and the sellers in the market have some control over the price of the goods. As the price of these houses goes down the demand for the houses will rise and vice versa. Also there is free entry and exit in the market for the firms. All these features are of a monopolistic competitive market.