Question

A group of teens in your town meet and agree to charge a flat fee of five dollars per hour for babysitting. They charge the same rate no matter how many children there are, or when the service is needed. Then they divide areas of town on a map between them, agreeing to only serve customers within their respective areas. Within weeks they have gained most of the business in town, driving out other teens that cannot lower their rates. The babysitting market in your town has become
A. monopolistically competitiveB. an oligopolyC. purely competitiveD. a monopoly

Answer 1

Answer:

B. an Oligopoly

Step-by-step explanation:

A. monopolistically competitive

This options is not correct because the number os competitors is too small to talk about monopolistic competition.

B: an Oligopoly

This options is correct since market is controlled by just a few competitors.

C. purely competitive

this is wrong because the babysitters are not competing between them.

D. a monopoly

This option is wrong because there is more than one competitor.