A monopolistically competitive industry is made up of:
A)a few firms,each producing a very differentiated good.
B)one firm that produces a standardized good.
C)market participants who are all price takers.
D)many firms producing a slightly differentiated product.

Question

Quizplus · Accepted Answer

A monopolistically competitive industry is characterized by many firms producing slightly differentiated products. This means that each firm has some market power and is able to set prices to some extent, but there are still enough competitors to limit that power. This leads to competition based on product differentiation, advertising, and non-price factors, rather than purely on price.

A Monopolistically Competitive Industry Is Made Up Of