Which markets compete in non-price competition? A) oligopoly and perfect competition B) monopoly and monopolistic competition C) monopolistic competition and oligopoly D) perfect competition and monopolistic competition

Question

Business

Ari Daniels

31 May, 10:13

Which markets compete in non-price competition? A) oligopoly and perfect competition B) monopoly and monopolistic competition C) monopolistic competition and oligopoly D) perfect competition and monopolistic competition

+4

Answers (1)

Know the Answer?

Deangelo Peck · Answer 1

Monopoly and monopolistic competition markets compete in non-price competition. The answer is B.

Explanation:

A monopoly is a market that consists of a single firm that produces goods that have no close substitutes. These are price makers and can change both the price and quality of their products.

There is a single seller that controls the whole market and often has several barriers to entry. Examples: providers of water, natural gas, telecommunications, and electricity.

Monopolistic competition is an imperfect competition where several producers sell products differentiated from each other. The difference is mainly by brands or quality.

One firm doesn't have the total control over the price of the market. Consumers assume that there are non-price differences among the products of competitors.