Question

Is the manufacturing of canned and frozen vegetables considered a monopolistic or oligopolistic market? Why?

Answer 1

Monopolistic competition is a market type where there are-

large number of buyers and sellers in the market

there are few barriers to entry and exit in the market

the products are slightly differentiated in terms of shape, size ,color, etc

Oligopolistic marketis a market type where-

there are few large sellers and large number of buyers

price is decided by these few large sellers

there are barriers to entry and exit

so the manufacturing of canned and frozen vegetable will come under monopolistic competition as these are the goods which are slightly differentiated in terms of their shape, size, colour, packaging etc

they have large number of competitors which have not totally power to set the price in the market

so they will come under the monopolistic market