Under monopolistic competition ________.
A)the goods purchased are assumed to be standardized products
B)it is good (or brand)differentiation that likely accounts for some price stickiness
C)buyers and sellers do not set prices and can only decide how much to buy and sell
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Monopolistic competition features differentiated products, which can result in brand loyalty and price stickiness as consumers may be willing to pay higher prices for certain branded products.

Under Monopolistic Competition ________