If there are many firms in an industry producing goods that are similar but slightly different,this is an example of
A)Perfect competition.
B)Monopolistic competition.
C)Oligopoly.
D)Monopoly.

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by many firms producing similar but slightly differentiated goods. Each firm has some control over the price of its product, but are still price takers to some extent. In perfect competition, all firms produce identical products and are price takers. In an oligopoly, there are only a few large firms dominating the market, and in a monopoly, there is only one firm controlling the market.

If There Are Many Firms in an Industry Producing Goods