Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Non Competitive markets

Question:
The product soaps and shampoos will fall under which form of market
Options:
Monopoly
Perfect competition
Monopolistic competition
Oligopoly
Correct Answer:
Monopolistic competition
Explanation:
The products are differentiated with firms incurring huge selling costs to promote their sales. Also, entry is easy, leading to large number of firms operating ad offering close substitutes.