The market for city-centre hotels in Barcelona is characterised by a wide range of establishments. However, the accommodation produced is not perceived to be identical (i.e. they are imperfect substitutes). The market is relatively easy to enter and exit. The distinguishing features might include décor, price and quality of the accommodation and atmosphere. Based on this information which of the following statements is true? (a) The market is closest to perfect competition; (b) The market is closest to oligopoly. (c) The market is closest to monopolistic competition; (d) The market is closest to duopoly;

The market for city-centre hotels in Barcelona is characterised by a wide range of establishments. However, the accommodation produced is not perceived to be identical (i.e. they are imperfect substitutes). The market is relatively easy to enter and exit. The distinguishing features might include décor, price and quality of the accommodation and atmosphere. Based on this information which of the following statements is true? (a) The market is closest to perfect competition; (b) The market is closest to oligopoly. (c) The market is closest to monopolistic competition; (d) The market is closest to duopoly;

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter14: Indirect Price Discrimination

Section: Chapter Questions

Problem 1MC

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