Which of the following markets can most accurately be described as monopolistically competitive?
A)Toothpaste
B)Milk
C)Electricity
D)Apples

Question

Quizplus · Accepted Answer

Toothpaste market has several brands that differentiate themselves based on flavor, packaging, price, and marketing, making it a good example of monopolistic competition. Milk and apples, on the other hand, have many producers but the products themselves are relatively homogeneous, leading to a competitive market structure. Electricity market is typically an oligopoly or a natural monopoly with few producers, high barriers to entry, and limited product differentiation.

Which of the Following Markets Can Most Accurately Be Described