Asked by Devon Westerlund on May 05, 2024
Verified
The airline industry is a good example of a monopolistically competitive industry.
Airline Industry
A sector comprising companies that provide air transport services for traveling passengers and freight.
- Recognize instances of monopolistically competitive markets in real-life scenarios.
Verified Answer
KG
khaled gamalMay 09, 2024
Final Answer :
False
Explanation :
The airline industry is better characterized as an oligopoly because it is dominated by a few large firms, has high barriers to entry, and firms often set prices based on their competitors' actions, rather than being a monopolistically competitive industry where many firms sell differentiated products.
Learning Objectives
- Recognize instances of monopolistically competitive markets in real-life scenarios.