A monopolistically competitive industry is characterized by a _____ number of firms producing _____ products with _____ entry.
A)small;identical;barriers to
B)small;similar;relatively easy
C)large;similar;relatively easy
D)large;identical;relatively easy

Question

Quizplus · Accepted Answer

In a monopolistically competitive industry, there are a large number of firms producing similar products with relatively easy entry. This means that each firm has some control over the price it charges but faces competition from other similar firms. It is not a perfect competition as the products are not identical, but also not a monopoly as there are many firms in the market.

A Monopolistically Competitive Industry Is Characterized by a _____ Number