An industry with a large number of relatively small firms producing _____ in a market with easy entry and exit is a(n) _____.
A) similar products; monopoly
B) identical products; monopolistic competition
C) differentiated products; oligopoly
D) differentiated products; monopolistic competition

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by many firms producing differentiated products with easy entry and exit in the market.

An Industry with a Large Number of Relatively Small Firms