Monopolistic competition is a market structure:
A)with many competitors selling differentiated products.
B)with only a handful of competitors selling similar products.
C)with many competitors selling virtually identical products.
D)with just a single producer completely dominating the industry.

Question

Quizplus · Accepted Answer

Monopolistic competition is a market structure in which there are many competitors, but they are selling differentiated products. This means that each competitor has some control over the price of their product, but they still face competition from other firms in the market. This creates a situation where firms have some market power, but they do not have a monopoly.

Monopolistic Competition Is a Market Structure