Answer to Question #131174 in Microeconomics for Tshepiso

Question

Question 5
Q.5.1 identify any five examples of industries operating under conditions of monopolistic competition and outline any of their salient features to justify your selection. 10 marks

Answer 1

The examples of industries operating under conditions of monopolistic competition include ;

1) Transportation industry

2) Television Programmes

3) Restaurant Business

4) Clothing Industry

5) Consumer Services i.e Hairdressing

Salient features of Monopolistic Competition ;

1)There is freedom of entry and exit in the market

2)There are many sellers in the market.

3)The goods produced by the firms are differentiated.

4)Firms are productively and allocatively efficient.

5)Individual firms makes decisions on their own.