Under monopolistic competition there are

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by a large number of firms that produce differentiated products, meaning that while the products may be similar, they are not identical. This leads to low barriers to entry since new firms can enter the market by producing slightly different products. Therefore, choice C is correct - monopolistic competition has low barriers to entry.

A is incorrect because the products are not identical.
B is incorrect because monopolistic competition is characterized by low barriers to entry, not high barriers.
D is incorrect because firms in monopolistic competition have some control over price due to product differentiation, although they do face competition from other firms in the market.

Under Monopolistic Competition There Are