[Answer] Andy compares mattresses. A twin-sized NightSoft mattress at the large chain BuyRite costs $1 500. The BuyRite saleswoman tells Andy that the company’s 24-hour customer service free mattress cleaning and 60-day return policies are the best in the business.A similar twin-sized model the DarkNights mattress at the small store Joe’s Bed and Linens costs $1 495. The salesman at Joe’s tells Andy that this store offers a 30-day money-back guarantee plus free delivery.Which of these is Andy experiencing?

Answer: Non-price competition in a monopolistically competitive market
Andy compares mattresses. A twin-sized NightSoft mattress at the large chain BuyRite costs $1 500. The BuyRite saleswoman tells Andy that the company’s 24-hour customer service free mattress cleaning and 60-day return policies are the best in the busines…

Leave a Reply