Which of the following is an example of a monopolistically competitive industry?
A)computer operating systems
B)wheat
C)movies
D)cable television

Question

Quizplus · Accepted Answer

Movies are an example of a monopolistically competitive industry because there are many different producers creating differentiated products (e.g. action movies, romantic comedies, horror films) but there is a limited number of consumers who have their own preferences and tastes. This creates competition amongst the producers, but also some market power in terms of pricing and advertising.

A) computer operating systems are an example of an oligopoly, where a few large firms dominate the market.
B) wheat is an example of a perfectly competitive market, where there are many small producers who cannot differentiate their product.
D) cable television is an example of an oligopoly, where a few large firms dominate the market.

Which of the Following Is an Example of a Monopolistically