A monopolistically competitive firm is one:
A)that behaves like a monopolist.
B)of many firms that sell products that are close but not perfect substitutes.
C)of many firms that all sell the exact same product.
D)of a small number of firms that sell products that are close but not perfect substitutes.

Question

Quizplus · Accepted Answer

Monopolistic competition is an industry structure in which a large number of firms produce slightly differentiated products that are all reasonably close substitutes for one another.

A Monopolistically Competitive Firm Is One