Monopolistic competition has ______.

Question

Quizplus · Accepted Answer

Monopolistic competition is a market structure where there are many buyers and sellers, and each seller offers a slightly differentiated product. Therefore, sellers have some control over the price of their product, although they are not the only ones selling in the market. This makes choice D the correct answer. Choice A (only one seller) would refer to a monopoly, while choice C (only a few sellers) would refer to an oligopoly. Choice B (many buyers and sellers, none of whom can control prices) is a description of perfect competition where all the firms offer the same homogeneous product and no seller or buyer has any control over the price.

Monopolistic Competition Has ______