In: Economics
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
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