Suppose There Are Many Independent Dry Cleaners in Your City,each

question 8

Multiple Choice

Suppose there are many independent dry cleaners in your city,each of which provides essentially the same service.However,one offers local delivery,another offers free coffee in the shop,while another offers one-hour dry cleaning.Which of the following statements explains what is happening in this market?

• A)These firms are perfectly competitive and are attempting to increase sales and maximize their profits.
• B)These firms are oligopolistic and are engaging in strategic behaviour.
• C)These firms are perfectly competitive and are engaging in non-price competition.
• D)These firms are monopolistically competitive and are attempting to differentiate their product.
• E)These firms are perfectly competitive and are engaging in strategic behaviour.

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Definitions:

Cotyledons

Embryonic leaves in seed-bearing plants, which are the first to appear from a germinating seed and play a key role in photosynthesis and nutrient storage.

Vascular Bundles

Structures in plants that contain xylem and phloem tissues, responsible for transporting water, nutrients, and sugars.

Flesh

The soft tissue of the body, especially muscle and fat, that covers the bones and is beneath the skin.

Apple

A fruit produced by the apple tree, known scientifically as Malus domestica, widely cultivated for its sweet taste and nutritional benefits.