Question

the table shows the total revenue of the six firms that make fresh goat cheese. to be sure that the market for is an example of monopolistic competition, what additional information would you need?

Answer 1

To ascertain if the fresh goat cheese market exemplifies monopolistic competition, we need to verify product differentiation, the number of firms, market share distribution, and the ease of market entry and exit.

Step-by-step explanation:

To determine if the market for fresh goat cheese is an example of monopolistic competition, additional information would be needed beyond just the firms' total revenue. We would need to know if:

• Each firm has some control over the price due to product differentiation.
• There is free entry and exit in the market.
• There are many buyers and sellers in the market, each with a relatively small market share.

This information is crucial because monopolistic competition is characterized by product differentiation, many firms, and low barriers to entry. By establishing these factors, we can conclude whether the market structure conforms to monopolistic competition.