Advertisements
Advertisements
Question
Which type of market structure is the following? Give reason.
Jeans
Answer in Brief
Advertisements
Solution
The market structure for jeans is monopolistic competition.
Reason:
- The jeans market is controlled by several sellers, including Levi's, Wrangler, Lee, and several other brands that offer comparable items but differ in terms of style, quality, brand image, and pricing.
- Each brand has some pricing control due to product differentiation, but there are many competitors, and customers can easily switch brands.
- This is an important element of monopolistic competition, where firms compete based on product differentiation rather than price alone.
shaalaa.com
Is there an error in this question or solution?
APPEARS IN
RELATED QUESTIONS
Define Discriminating Monopoly.
Indian Oil Corporation Limited is an example of a/an ______.
Which of the following statements are true?
- Monopolistically competitive markets have high selling costs.
- Monopolistically competitive markets sell homogeneous goods.
- Any firm can start a business in a monopolistically competitive market.
Read the given statements carefully and select the correct option.
- The number of sellers under oligopoly are small.
- In monopolistically competitive markets, buyers and sellers have perfect knowledge about the market conditions.
Define perfect competition.
Mention two features of monopoly.
State the market form of the following commodity.
Fighter Aircrafts
Which type of market structure is the following? Give reason.
Trucks
In what respects does oligopoly differ from monopoly?
In which market form is there a single seller and no close substitutes for the product?
