Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Non Competitive markets

Question:
Product sold by monopolistic firm has
Options:
Perfect substitutes
Close substitutes
No close substitutes
None of above
Correct Answer:
Close substitutes
Explanation:
It is Monopolistic and not Monopolist. So we are talking about monopolistic competition here. In monopolistic competition, products of competitors are close substitutes of each other.