Question: In the text we argued that a key difference between monopolistic competition and oligopoly is that in the former firms do not behave strategically whereas

In the text we argued that a key difference between monopolistic competition and oligopoly is that in the former firms do not behave strategically whereas in the latter they do. For each of the goods or services listed below, state whether the industries are likely to be best described by monopolistic competition or oligopoly. Explain your reasoning.
a. Car repair
b. Haircuts
c. Dry cleaning
d. Soft drinks
e. Breakfast cereals
f. Restaurant meals
g. Automobiles

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a Car repairThere are many small car repair centres each of which offers slightlydifferentiated service guarantees etc There is unlikely to be much st... View full answer

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