inst Question 34 of 41 Save E Time remaining 34 The followi

inst Question 34 (of 41 Save & E Time remaining 34. The following could be considered monopolistically competitive: O The Soap industry in the United States O None of the above O Corn markets O The athletic shoe Industry in the United States O The sunglass industry in the United States

Solution

Option 1. The soap industry in the United States

Explanation: In a monopolistically competitive industry, there are many sellers and each seller sell a differentiated product. Also, the sellers take help of non-price competition such as advertising to capture a larger share of the market. In the US soap industry, there are a large number of sellers which sell differentiated soaps and take help of advertising in order to capture a higher market share.