Which of the following products is least likely to be sold in a monopolistically competitive market?

Question

BlackTom AI · Accepted Answer

Let's break down what monopolistic competition typically looks like and how each product fits that idea.
Option 1: Video games. This market features many firms selling differentiated products (different game titles, genres, platforms), so it aligns with monopolistic competition characteristics.
Option 2: Cotton. Cotton is a highly standardized, homogeneous commodity with little differentiation across suppliers, which is more characteristic of perfect competition than monopolistic competition.
Option 3: Beer. Although there are many brands, beer is often differentiated by brand, taste, packaging, and marketing, fitting the monopolistic competition pattern of many firms selling differentiated products.
Option 4: Breakfast cereal. Cereals are distinguished by flavors, branding, and varieties, which is typical of monopolistic competition where products are differentiated.
In summary, the presence of strong product differentiation in options 1, 3, and 4 matches monopolistic competition, whereas cotton's uniform, undifferentiated nature makes it least likely to be sold in a monopolistically competitive market.

Which of the following products is least likely to be sold in a monopolistically competitive market?

View Explanation

Log in for full answers

Similar Questions

In a market with________, many firms are providing differentiated products.

Which of the following is true of a monopolisti-cally competitive firm in long-run equilibrium?

The diagram below shows the marginal cost (MC), average cost (AC), and demand curve faced by a representative firm in a monopolistically competitive market. Which one of the following statements is TRUE?

The diagram below shows the marginal cost (MC), average cost (AC), and demand curve faced by a representative firm in a monopolistically competitive market. Which one of the following statements is TRUE?

2. In the short-run, a profit-maximizing monopolistically competitive firm sets it price: A. equal to marginal revenue. B. equal to marginal cost. C. above marginal cost. D. below marginal cost.

19 A firm in a monopolistically competitive market that does not continue to innovate is likely to: A. become more efficient B. earn a normal profit C. earn positive economic profits D. see its demand curve become more inelastic

Unlike a firm in a perfectly competitive market, a firm in a monopolistically competitive market: A. can charge a price higher than ATC in the long run B. can charge a price higher than MC in the long run C. is not constrained by the demand curve, only by MR D. makes a normal profit in the long run

13 A firm in a monopolistically competitive market is most like a: A. Big fish in a small pond B. Shark in a tank C. Small fish in a big pond D. Small fish in a small pond

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler