The type of industry that is characterized by many firms selling differentiated products is called
A)competition.
B)pure competition.
C)monopoly.
D)monopolistic competition.
E)oligopoly.

Question

Quizplus · Accepted Answer

Monopolistic competition is a type of industry where there are many firms selling differentiated products. This means that there is some level of product differentiation between the firms, giving them some degree of market power. However, there are still many firms in the industry, so there is competition. This is different from pure competition where there are many firms selling identical products and no one firm has any market power, and from a monopoly where there is only one firm in the industry.

The Type of Industry That Is Characterized by Many Firms