What is the difference between pure competition and monopolistic competition?
A) slight as the conditions for each are quite similar.
B) under pure competition there are many sellers and the product is homogeneous
C) while there many sellers, there is some differentiation in the product
D) not as great as there are with an oligopoly

Question

Quizplus · Accepted Answer

Pure competition is characterized by a large number of small firms with homogeneous products, meaning there is no differentiation between the products offered by each firm. Monopolistic competition, on the other hand, also involves many firms but each offers a slightly differentiated product. Therefore, the best choice is B as it accurately distinguishes between the two types of competition.

What Is the Difference Between Pure Competition and Monopolistic Competition