7.3k views
0 votes
TIMBER™, a lumber-selling company, competes in a market where there are many firms selling similar lumber products, with no distinct differentiation. This firm is most likely in which market structure:

a) Monopoly
b) Oligopoly
c) Perfect competition
d) Monopolistic competition

1 Answer

1 vote

Final answer:

Based on the information provided, TIMBER™ is most likely in the market structure of monopolistic competition.

Step-by-step explanation:

Based on the information provided, TIMBER™ is most likely in the market structure of monopolistic competition.

In monopolistic competition, there are many firms selling similar but not identical products. These firms have the ability to differentiate their products through branding, advertising, and other means. As mentioned, TIMBER™ operates in a market where there are many firms selling similar lumber products, but there is no distinct differentiation.

In monopolistic competition, barriers to entry are generally low, allowing new firms to enter the market. This suggests that there are few barriers for new companies to start selling lumber products like TIMBER™. However, unlike perfect competition, the firms in monopolistic competition have some control over pricing due to the perceived differences in their products.

User Hoball
by
8.3k points