Asked by Michael McGuire on May 09, 2024

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Use your basic knowledge and your understanding of market structures to answer this question.Which of the following companies most closely approximates a monopolistic competitor?

A) Subway Sandwiches.
B) Pittsburgh Plate Glass.
C) Ford Motor Company.
D) Microsoft.

Monopolistic Competitor

A monopolistic competitor operates in a market structure characterized by many firms offering products that are similar but not identical, leading to differentiated competition.

Sandwiches

A commonly consumed food item consisting of two or more slices of bread with one or more fillings between them.

Plate Glass

A type of glass that is made by cooling molten glass on a flat surface, resulting in large, flat panels used in windows and doors.

  • Discuss the analogies and differences among monopolistic competition and other market schemes.
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Alexandra SevostyanovaMay 13, 2024
Final Answer :
A
Explanation :
Subway Sandwiches operates in a market structure which is most closely associated with monopolistic competition. They sell a differentiated product, meaning consumers perceive their sandwiches as different in some way from other fast food or sandwich shops. While there are many other fast food or sandwich options available to consumers, Subway has been successful in establishing a loyal customer base due to its unique offerings and promotions, which is typical of a monopolistic competitive market structure. Pittsburgh Plate Glass operates in a pure competition market structure, Ford Motor Company operates in an oligopoly market structure, and Microsoft operates in a monopolistic market structure.