The breakfast cereal market is an example of monopolistic competition True False

Question

The breakfast cereal market is an example of monopolistic competition True False The corn market is an example of monopolistic competition True False The tourist accommodation market is an example of monopolistic competition True False The ice cream market is an example of monopolistic competition True False The hair gel market is an example of monopolistic competition True False The digital camera market is an example of monopolistic competition True False The newspaper market in a large city is an example of monopolistic True False

Explanation / Answer

1. Breakfast cereal market: False.

Explanation: It is an example of oligopolistic competition. oligopoly as the form of market organization in which there are few sellers of a homogeneous or differentiated product. Some oligopolistic industries are automobiles,steel, electrical equipment, breakfast cereals,cigarettes,etc.

2. Corn market: False

Explanation: It is an example of perfect competition. In a competitive market, there are large numbers of firms producing a standardized product. The main reason why there are many firms is because there is a low barrier of entry into the business. The best examples of a perfectly competitive market are agricultural products, such as corn, wheat, and soybeans, etc.

3. Tourist accomodation market: True

Explanation: It is an example of oligopolistic competition. The accommodation sector is dominated by large chains giving the impression of an monopolistic competition.This sector encompasses a large number of establishments with diverse attributes, including hotels, motels, holiday centers, and the diversity of the products that they provide, and a degree of price control, indicate monopolistic competition.

4. Ice cream market: True

Explanation: Monopolistic Competition is a market structure in which many companies sell products that are similar but not identical. Examples are, gas, ice cream, etc.

5. Hair gel market: True

Explanation: Monopolistic Competition is a market structure in which many companies sell products that are similar but not identical. Examples are, gas, ice cream, hair gel etc.

6. Digital camera market: True

Same explanation as above

7. News paper market: False

Explanation: It is an example of oligopolistic competition. oligopoly as the form of market organization in which there are fews ellers of a homogeneous or differentiated product. t is because of the characteristics of having fewer dominant sellers with heterogeneous products and fewer entry barriers.

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