1) Clothing, 2) IBM, Lenovo, Toshiba, and Dell laptops, 3) Pharmaceuticals, 4) Foods, 5) Canon, Sony, Nikon, and Olympus cameras,
6) Coca-Cola beverages, 7) Boeing airplanes, 8) Health care products, 9) Home appliances, and 10) Cosmetics. (20 points)
Answer: 1) Clothing, 3) Pharmaceuticals, 4) Food, 8) Health care products, and 10) Cosmetics are five goods that are monopolistically competitive.
Their ****similar characteristics are: first, there are many manufacturers and each has something unique to offer; second, the functions of each are virtually indistinguishable and can be substituted for each other.
b. 1) Monopolistic Competition Market Characteristics: both monopoly, there are differences in products; a particular firm first set its own prices. There is also competition (there is substitutability between differentiated products); firms then adjust prices according to the market.
2) Characteristics of monopolistic competition: a larger number of firms in and out of the industry is prone to product differences firms ignore the reactions of their competitors