Which one of the following is a typical example of monopolistic competition ?
Retail vegetable markets
Market for soaps
Indian Railways
Labour market for software engineers
Answer is Wrong!
Answer is Right!
This question was previously asked in
UPSC CDS-2 – 2021
– Product differentiation allows firms to have some degree of market power (downward sloping demand curve), but the presence of many close substitutes limits this power.
– Indian Railways is a government monopoly.
– Labour markets can vary significantly in structure, but a labour market for specific skilled professionals like software engineers might involve elements of oligopsony (few major employers) or competition, not typically monopolistic competition as understood in product markets.