Bailey Wear manufactures children's clothing. The company is able to set its prices higher than its competitors because of the fine material it uses and the attention it pays to the quality of the sewing. Bailey Wear is operating in a competitive environment of

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Bailey Wear is able to set higher prices due to the quality and uniqueness of its products, which is a characteristic of monopolistic competition. In perfect competition, all firms offer identical products at the same price, so Bailey Wear would not be able to charge higher prices. Oligopolistic competition involves a small number of large firms dominating the market, which does not apply to Bailey Wear since it is not mentioned that it is part of a small group of dominant firms. Oligopoly and monopoly involve even fewer firms dominating the market, which also do not apply to Bailey Wear.

Bailey Wear Manufactures Children's Clothing