A(n)___________ exists when a large number of firms produce goods that are similar but are perceived by buyers as being different.
A)perfect competition
B)monopolistic competition
C)oligopoly
D)monopoly

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by a large number of firms producing differentiated products that are perceived as unique by consumers. This means that each firm has some degree of market power due to the uniqueness of their product, but there are still many substitutes available in the market. This type of market structure lies between perfect competition (where firms sell identical products) and monopoly (where there is only one seller of a product with no close substitutes). Oligopoly is a market structure where a small number of firms dominate the market, while monopoly is a market structure with only one firm.

A(n)___________ Exists When a Large Number of Firms Produce Goods