Asked by Brian Metroz on May 01, 2024
Verified
The automobile industry is a good example of a monopolistically competitive industry.
Monopolistically Competitive
A market structure characterized by many firms selling products that are similar but slightly differentiated, leading to non-price competition.
Automobile Industry
A global sector that involves the manufacturing, marketing, and selling of motor vehicles.
- Understand the concept of monopolistic competition and how it differs from other market forms.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
False
Explanation :
The automobile industry is better characterized as an oligopoly because it is dominated by a few large firms, not many firms selling differentiated products as in monopolistic competition.
Learning Objectives
- Understand the concept of monopolistic competition and how it differs from other market forms.
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