Question

Give an example of monopolistic industry and describe its major features

Answer 1

1. Pizza restaurants is the perfect example for monolositic industry.

Features:

1) many sellers : there are many sellers for the same product in this industry. For example: Pizza is sold by Papa John, Smokin Joes, Pizza hut and Dominos etc.

2) Differentiated products : there is Differentiated products that in terms of features, size, color , taste etc. For pizza,it can be different marketring strategy, different spices etc, difference size.

3) Easy entry: Firms are relatively small , this barriers to entry is low. In pizza case, any local vendor can enter easily and compete