Question

Can market for watches be the example monopolistic competition

Answer 1

Monopolistic competition is a market structure containg a large number of relatively small firms, with relative freedom of entry& exit.

Oligopoly is a market structure containg a small number of relatively large firms, with significant barriers to entry of other firms.

So, In my opinion watches be the example of oligopoly instead of monopolistic competition.

Answer 2

monopolistic competition

There is a high degree of competition because of the large  of firms in the market, but each firm differentiates its products so it is like each firm has a monopoly on its own products.
ex. There are lots of watches you can buy, but only Rolex sells Rolex watches .

Differentiated products (a group of products that are similar enough to be considered the same product but different enough that they can be sold at different prices.


therefore watches are example of monopolistic competition