Asked by Kayden Ngenzi on Apr 24, 2024
Verified
Gas stations are not monopolistically competitive because everyone knows the gasoline is the same,regardless of where it is purchased.
Monopolistically Competitive
Describes a market structure where many firms sell products or services that are similar but not identical, allowing for some degree of market power.
- Understand the concept of monopolistic competition and how it differs from other market structures.
Verified Answer
ZK
Zybrea KnightMay 02, 2024
Final Answer :
False
Explanation :
Gas stations can be considered monopolistically competitive because even though the gasoline is the same, each gas station can differentiate itself through location, convenience, branding, customer service, and other factors. This allows them to have some control over pricing and to compete with other gas stations in their area.
Learning Objectives
- Understand the concept of monopolistic competition and how it differs from other market structures.
Related questions
Monopolistic Competition Is Often Found in Service Industries
Monopolistically Competitive Firms Are Unable to Affect the Market Price ...
In Monopolistically Competitive Industries, the Market Sets the Price
Monopolistically Competitive Firms Are Like Perfectly Competitive Firms in That ...
The Automobile Industry Is a Good Example of a Monopolistically ...