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 perfectly competitive and are attempting to increase sales and maximize their profits.
B) These firms are oligopolistic and are engaging in strategic behaviour.
C) These firms are perfectly competitive and are engaging in non-price competition.
D) These firms are monopolistically competitive and are attempting to differentiate their product.
E) These firms are perfectly competitive and are engaging in strategic behaviour.
Correct Answer:
Verified
Q20: The table below shows the market shares
Q21: Consider the following characteristics of a particular
Q22: The demand curve facing a monopolistically competitive
Q23: Consider the following characteristics of a particular
Q24: A characteristic of a monopolistically competitive market
Q26: Of the following,which is the best example
Q27: The presence of significant scale economies in
Q28: If there are economic profits in a
Q29: In a monopolistically competitive industry,the freedom of
Q30: A monopolistically competitive firm maximizes profits in
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