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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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
(b) The market is closest to oligopoly.
(c) The market is closest to
(d) The market is closest to duopoly;
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