Question

When Gap Stores get an exclusive contract to sell uniforms to your old high school, it is an example of?

1) monopolistic competition
2) oligopolistic competition
3) pure monopoly
4) pure competition
5) perfect competition

Answer 1

When Gap Stores gets an exclusive contract to sell uniforms to a high school, it is an example of monopolistic competition.

Step-by-step explanation:

When Gap Stores get an exclusive contract to sell uniforms to your old high school, it is an example of monopolistic competition. Monopolistic competition is a type of imperfectly competitive market where many firms compete by selling similar, but not identical, products.

In this case, Gap Stores has an exclusive contract, which means they are the only supplier of uniforms to your old high school, giving them some market power and ability to differentiate their products.