Which of the following markets is not likely characterized by a monopolistically competitive market?
A) piano lessons
B) corn
C) cookies
D) clothing

Question

Quizplus · Accepted Answer

Corn is often produced by a large number of farmers under standard conditions, leading to a relatively standardized product and very little product differentiation. This makes it more likely to be a perfectly competitive market rather than monopolistically competitive. Piano lessons, cookies, and clothing are all industries where products have a high level of differentiation and some market power is held by individual firms, making them more likely to be monopolistically competitive markets.

Which of the Following Markets Is Not Likely Characterized by a Monopolistically