Question

Under monopolistic competition, there are Identical products High barriers to entry Low barriers to entry So...

  1. Under monopolistic competition, there are
  1. Identical products
  2. High barriers to entry
  3. Low barriers to entry
  4. So many firms that no one can control the price
  1. There are fifteen airlines that will take you from New York to L.A. the best model to analyze this market is
  1. Perfect competition
  2. Monopolistic competition
  3. Oligopoly
  4. Monopoly
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Homework Answers

Answer #1

1. Option C.

  • Monopolistically competitive market is a Market structure consisting of firm's selling differentiated products.
  • This market is characterized by very low or no barriers to entry or exit.
  • These firms are price maker's as they charge different prices for different products.

2. Option B.

  • The best model to analyze this market is monopolistically competitive market.
  • This is because there are fifteen airlines that operate from New York to L.A and each of them provide differentiated services at different prices.
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