Question

Which of following is an example of a monopolistically competitive firm?

a. Farmer Jones's wheat farm.

b. Post Breakfast Cereals.

c. TCI Cablevision, a supplier of cable T.V. services.

d. T.J.'s Clothes, a local retail clothing store​

Answer 1

Answer:

TCL cablevision, a supplier of cable TV

Answer 2

Option d is the correct answer.

T.J.'s Clothes, a local retail clothing store​ is an example of monopolistically competitive firm.

• It is so because firms in a monopolistic market sell such goods and services that are similar but not perfect substitutes of each other.
• Similarly one local clothes' shop may sell shirts another may sell pants or both may sell shirts one for kids and another for adults.

1. Farmer Jones's wheat farm will produce almost similar wheat to other farmers.
2. Post breakfast cereals may differ in brand but their composition is likely to be same.
3. Whether it is TCI Cablevision, a supplier of cable T.V. services or any other service provider, they all will same service