An example of a monopolistically competitive industry would be:
A) steel.
B) soybeans.
C) electricity.
D) retail clothing.

Question

Quizplus · Accepted Answer

Retail clothing is an example of a monopolistically competitive industry because there are many different firms producing slightly differentiated products, such as different styles or quality levels. Each firm has some degree of pricing power due to brand loyalty or product differentiation, but there is still competition from other firms in the market. Steel, soybeans, and electricity are all examples of industries that are more likely to be oligopolies or monopolies due to the high barriers to entry and the concentration of market power among a few large firms.

An Example of a Monopolistically Competitive Industry Would Be