According to the video, which market structure category is the toothbrush market best described as?

Question

BlackTom AI · Accepted Answer

To answer this question, we need to think about the characteristics of each market structure and match them to the toothbrush market as described in the video.
Option a: Oligopoly. This would involve a few large firms that may collude or influence prices. The toothbrush market is typically not dominated by a small number of firms with strong collusion; there are many brands and brands compete on more than just price.
Option b: Perfect competition. This requires many buyers and sellers, homogeneous products, no barriers to entry, and perfect information. Toothbrushes are differentiated by design, branding, flavor, bristle types, and packaging, so the products are not perfectly homogeneous.
Option c: Monopolistic competition. This fits best because there are many firms selling toothbrushes, each offering slightly differentiated products (branding, features, aesthetics), allowing price competition but also product differentiation. Consumers perceive differences among brands, which is a hallmark of monopolistic competition.
Option d: Monopoly. This would mean a single seller controls the market with no close substitutes. That is clearly not the case for toothbrushes, which have many brands and options available from numerous producers.
In summary, the video’s portrayal aligns with monopolistic competition: many firms with differentiated products, competing on variety and features rather than pure price alone.

MUF0061 Economics Unit 1 - Semester 2, 2025 Video and Quiz: Introduction to Market Structures (10 - 15 minutes)

According to the video, which market structure category is the toothbrush market best described as?

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