Question

Being a student of economics, you're required to identify the market structure category in vhich this Khaadi brand falls. Justify your ansver by applying any tvo key characteristics of that market structure on the given industry.

Answer 1

Answer:

monopolistic competition as there are other brands too who produce herbal products like amway, patanjali.

but they are few in quantity, their products also varies.

hope it helps u mark me the brain list.

Answer 2

Khadi Brand falls in the category of "Monopolistic competition", which refers to a many small firms "competing against each other".

Explanation:

• Monopolistic rivalry is characterised by 4 principal characteristics: large numbers of buyers & small firms; similar, however, but "differentiated" sold by the firms; low barriers to entry & exit;
• The profit is paid as salaries to people who are involved in the production of khaadi goods. This income is, however, distributed between the total number of employees who either participate or take part in weaving khaadi to give them their finished form or are engaged in spinning.
• With regard to costs, the seller must cover all costs alone such as insurance, welfare grants, incentives, bank interests, among others; although he receives a subsidy for all this,
• Alternatively, the profit margin is even higher than Khaadi for the handloom sector/products. This is mainly because the market structure has dropped and also because of the decline of the Khaadi brand.

To know more

short note on khadi and village industry - Brainly.in

https://brainly.in/question/8047865