Because most communities have a large number of similar but not identical substitutes,the market for financial planners is BEST considered to be:
A)a monopoly.
B)an oligopoly.
C)perfect competition.
D)monopolistically competitive.

Question

Quizplus · Accepted Answer

The market for financial planners consists of many similar but not identical substitutes, indicating that it is monopolistically competitive. In this type of market, there are many sellers and buyers, and firms differentiate their products through branding, location, and other factors to gain a competitive advantage. However, because there are many substitutes, firms cannot control the price of their product or service, which is a key feature of perfect competition. Additionally, an oligopoly would involve a small number of firms dominating the market, which is not the case here. A monopoly would involve a single firm controlling the market, which is also not the case.

Because Most Communities Have a Large Number of Similar but Not