Suppose there are many independent dry cleaners in your city,each of which provides essentially the same service.However,one offers local delivery,another offers free coffee in the shop,while another offers one- hour dry cleaning.Which of the following statements explains what is happening in this market?
A) These firms are monopolistically competitive and are attempting to differentiate their product.
B) These firms are perfectly competitive and are attempting to increase sales and maximize their profits.
C) These firms are perfectly competitive and are engaging in strategic behaviour.
D) These firms are oligopolistic and are engaging in strategic behaviour.
E) These firms are perfectly competitive and are engaging in non- price competition.
Correct Answer:
Verified
Q56: Q73: With regard to the long- run equilibrium Q74: Consider an industry that is monopolistically competitive.In Q75: A characteristic common to most imperfectly competitive Q76: Consider the three largest cell- phone service Q77: Which of the following statements is the Q79: In an oligopolistic industry,which of the following Q80: Compared with perfect competition,monopolistic competition results in Q82: The theory of oligopoly suggests that Q83: Suppose there are only two firms in
A)a
A)the tendency
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents