Question

Which of the following is a real-life example of monopolistic competition?

Options

• A government electricity company

• A single railway company in a region

• Different brands of toothpaste like Colgate, Babool, and Dant Kanti

• A single farmer selling wheat in a large market

Answer 1

Different brands of toothpaste like Colgate, Babool, and Dant Kanti

Explanation:

There are many toothpaste brands; each has its own brand image and features, but they are close substitutes, which reflects monopolistic competition.