In a monopolistic competitive industry,
A)each firm in the industry produces a slightly differentiated product.
B)there are significant barriers to entry.
C)there are significant barriers to exit.
D)there are few sellers.

Question

Quizplus · Accepted Answer

In a monopolistically competitive market, firms produce similar but slightly differentiated products, which is what allows them to have some degree of market power. Unlike in a monopoly, there are low barriers to entry and exit, and unlike in oligopoly, there are many sellers.

In a Monopolistic Competitive Industry