Examples of monopolistically competitive markets include the markets for
A)restaurants and furniture.
B)wheat and corn.
C)postage stamps and wooden pencils.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Monopolistically competitive markets are characterized by many firms selling somewhat differentiated products. The restaurant and furniture markets both have many firms, but each firm has unique characteristics that differentiate them from their competitors. The wheat and corn markets, on the other hand, are considered to be perfect competition because the products are standardized and there are many sellers who have no control over the price. The markets for postage stamps and wooden pencils are closer to a monopoly because they are dominated by one or a few firms with considerable control over prices.

Examples of Monopolistically Competitive Markets Include the Markets for