Due to the existence of a large number of similar, but not identical, substitutes in most communities, the market for financial planners is best considered:
A) a monopoly.
B) an oligopoly.
C) perfect competition.
D) monopolistic competition.

Question

Quizplus · Accepted Answer

The market for financial planners is best considered monopolistic competition due to the existence of a large number of similar but not identical substitutes. In this type of market, firms have some control over the price of their products and differentiate themselves from their competitors through marketing and other strategies. However, there are still many firms in the market, which keeps prices competitive. A true monopoly or oligopoly would have fewer firms and more control over pricing. Perfect competition would require identical products, which is not the case for financial planners.

Due to the Existence of a Large Number of Similar