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Which of the following is not an example of a monopolistically competitive market? A) automobile producers...

Which of the following is not an example of a monopolistically competitive market?

A) automobile producers

B) gyms and fitness centers

C) coffee shops

D) makers of women's clothing

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Homework Answers

Answer #1

Option A.

  • Automobile producer's is not an example of a monopolistically competitive market. They are considered as oligopolists rather than monopolistic competitiors.
  • We know that an oligopoly is a market structure characterized by small number of dominant firms selling either differentiated or identical products.
  • There are only few dominant automobile producer's who produce and sell differentiated cars from other producer's. Hence they do not belong to a monopolistically competitive market.
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