d: Jul 31 at 1:34pm iz Instructions Question 34 Which of the following most clos

Question

d: Jul 31 at 1:34pm iz Instructions Question 34 Which of the following most closely approximates the conditions of a monopolistically competitive market? O Local cable television service, where a licensed supplier competes with firms offering satellite service. O The market for jumbo aircraft, where one major domestic firm competes with one major foreign firm. O The market for Grade A eggs, which is characterized by a large number of firms producing a homogeneous product The restaurant industry, which is characterized by firms producing a differentiated product in a market with low entry barriers Previous Quiz saved at 1

Explanation / Answer

Q)34. Here most closely approximates the condition of a monopolistically competitive market is - ans. iv. The restaurant industry, which is characterized by firms producing a differentiated product in a market with low entry barriers. It is monopolistically competitive market because it satisfies the condition of differntiated product and products are close substitute. The entry is not barriers or low entry barriers and large number of sellers.

First one will not be the answer because cable operators all provide same type of service i.e satellite service. Here the products are not differntiated product. Second option i.e market for jumbo aircraft where we get one major foreign firm. So there is not many firms so it also not satisfy the monopolistically competitive criteria. Third option i.e market for grade A eggs also not monopolistically competitive because large number of firms producing homogeneous product. So these three i.e option i, ii, and option iii are not monopolistically competitive closely. So option IV is correct.

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.