Walmart has a large aisle that displays many different kinds of toothpastes. This observation indicates that the toothpaste market is
A)a perfectly competitive market.
B)a monopolistically competitive market.
C)an oligopoly.
D)a monopoly.

Question

Quizplus · Accepted Answer

The large display of different types of toothpastes at Walmart suggests that there are many firms competing with differentiated products, which is a characteristic of monopolistic competition. In a perfectly competitive market, there would be homogenous products and many small firms, while an oligopoly would have only a few large firms dominating the market, and a monopoly would have only one firm with complete control over the market.

Walmart Has a Large Aisle That Displays Many Different Kinds