Which of the following industries is best characterized as m

Which of the following industries is best characterized as monopolistically competitive?
(A) Crude oil
(B) Agriculture
(C) Toothpaste
(D) Local telephone service

Solution

Option (C).

There are many buyers and sellers of toothpaste, but each seller sells a slightly differentiated product (variants of toothpaste).

Which of the following industries is best characterized as monopolistically competitive? (A) Crude oil (B) Agriculture (C) Toothpaste (D) Local telephone servic

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