Question:
Which of the following industries in Sri Lanka is most likely to be monopolistically competitive?
(1) Tire manufacturing
(2) Television broadcasting
(3) Soft drinks
(4) Newspaper
(5) Beauty salons
Correct Answer:
(5)
Answer Explanation:
Monopolistic competition is characterized by many small sellers, low barriers to entry/exit, and differentiated products or services. Beauty salons perfectly fit this description, whereas tires, TV, soft drinks, and newspapers are typically oligopolies with high barriers to entry.
Topic: Market Structures Year: 2021
Leave a Reply