Question

Jeffrey's mom specifically asked for a CIP cast iron pan for her birthday. As Jeffrey scanned the stock in two department stores, he found ten different brands, none of which were CIP. When he found CIP in a kitchen specialty shop, he was challenged to tell the difference between his mom's choice and the others. He was reminded of his business class, in which he learned about ______________ competition, where many sellers may be offering very similar products. Through various means, each seller differentiates his product from the competition.(A) oligopolistic competition(B) limited competition(C) perfect competition(D) monopolistic competition

Answer 1

Answer: Jeffery was reminded of his business class, in which he learned about monopolistic competition

This is a type of imperfect competition where several producers sell commodities that are distinguished from one another and hence are not substitutes.

Therefore, the correct option in the case discussed is (d)

Answer 2

Answer:

(D) monopolistic competition

Explanation:

This is an example of monopolistic competition. Monopolistic competition refers to a particular industry where many products and services are similar. However, none of them are perfect substitutes. The approach that these producers take is to try to differentiate their product in order to be able to achieve more sales. However, these producers generally have little power to curtail supply or raise prices.