Which of the following most characterizes monopolistic competition?
A)Price leadership.
B)Product differentiation.
C)Price discrimination.

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by product differentiation, where firms offer slightly different versions of the same product or service. This allows for some pricing power and gives firms the ability to set prices based on perceived differences in quality or features of their products. Price leadership and price discrimination are more commonly associated with other market structures such as oligopoly and monopoly, respectively.

Which of the Following Most Characterizes Monopolistic Competition