Question

In: Economics

Shopping malls typically lease retail space to a large number of clothing stores. When this group...

Shopping malls typically lease retail space to a large number of clothing stores. When this group of retailers competes to sell similar but not identical products, they engage in what economists call ________.

  • monopolistic competition

  • collusion

  • a cartel

  • perfect competition

Solutions

Expert Solution

Option 1

monopolistic competition

monopolistic competitive firms compete to sell similar but not identical products

Collusion and cartel firms sell goods at higher agreed price and quantity to increase profit.

perfect competition sell similar and identical products

Rahul Sunny answered 1 year ago
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