Sart Bimpson, an economics student, believes that a beer sold by one particular shack on the beach is completely different from an identical beer produced by the same factory and sold by the luxury hotel adjacent to the shack.
Sart Bimpson, an economics student, believes that a beer sold by one
particular shack on the beach is completely different from an identical beer produced by the same factory and sold by the luxury hotel adjacent to the shack. The response that would best describe Sart’s belief is:
the luxury hotel and the shack are in a perfectly competitive industry.
Sart thinks the luxury hotel is a monopoly seller of the beer.
the luxury hotel and the shack are in a monopolistically competitive industry.
Sart thinks the shack is in a perfectly competitive industry but the luxury hotel is in an oligopoly industry.
Sart would say that, while beer is homogeneous, he perceives that the product is differentiated among the sellers.
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