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6.5. What are monopolistic competition and oligopoly?
Match the type of product differentiation to the situation it describes.
Style/Type
Location
Quality
A gas station right off the highway attracts more customers than a gas station five miles away.
Correct label:
Location
A Mercedes-Benz car dealership sells new cars at a higher price than a Nissan car dealership.
Correct label:
Quality
One clothing company releases a new line of cutting-edge fashions every year, while another sticks to popular, classic designs.
Correct label:
Style/Type
One computer company sells desktops, while another sells tablets.
Correct label:
Style/Type
One restaurant chain sells $2 burgers, while another sells burgers using fresher ingredients for $7.
Correct label:
Quality