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Categorize each seller below on the basis of the type of market it operates in

a. A designer labels the doth he designs in a(n) ______ market.
b. A big-box retailer operates in a(n) _______ market.
c. A picture-framing shop in a large metropolitar ________ market.
d. A seller of Canadian dollars in foreign currency markets operates in a(n) ________ market

1 Answer

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Final answer:

A designer operates in a monopolistic competition market, a big-box retailer operates in a perfectly competitive market, a picture-framing shop operates in a monopolistic competition market, and a seller of foreign currency operates in a perfectly competitive market.

Step-by-step explanation:

To categorize each seller based on the type of market they operate in:

  • A designer labels the clothes he designs in a(n) monopolistic competition market.
  • A big-box retailer operates in a(n) perfectly competitive market.
  • A picture-framing shop in a large metropolitan operates in a(n) monopolistic competition market.
  • A seller of Canadian dollars in foreign currency markets operates in a(n) perfectly competitive market.

Monopolistically competitive markets feature a large number of firms that offer similar but not identical products, allowing for differentiation. On the other hand, perfectly competitive markets have many buyers and sellers offering identical products, with full transparency and free entry and exit from the market. Both market structures are affected by factors like technology and globalization, which can alter the competitive landscape and redefine market boundaries.

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