Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Non Competitive markets

Question:
Which pair is correct?
Options:
Tea industry - Monopoly
Soap industry - Monopolistic Competition
Automobile industry - Monopoly
Railways – Perfect Competition
Correct Answer:
Soap industry - Monopolistic Competition
Explanation:
Tea falls under monopolistic competition due to large number of sellers selling differentiated products. Automobile falls under oligopoly due to few large firms and barriers to entry. Railways are an example of monopoly.