Why retail jewellery is considered as monopolistic competition but not oligopoly? As it also involves huge investments and enjoys abnormal profits and losses similar to oligopoly? Clear this doubt
Dear student,
Retail jewellers are example of Monopolistic competition as in retail jewellers sector there are many producers selling differentiated products. As there are many sellers and consumers in market no business has full control over market but producers have degree of control over price as they sell their products by different brands.
For example: Tanishq have a brand name and their rates differ from other jwellers.
Regards
Retail jewellers are example of Monopolistic competition as in retail jewellers sector there are many producers selling differentiated products. As there are many sellers and consumers in market no business has full control over market but producers have degree of control over price as they sell their products by different brands.
For example: Tanishq have a brand name and their rates differ from other jwellers.
Regards