Which of the following is NOT a characteristic of monopolistic competition?
A) No barriers to entry or exit
B) Small market share
C) Few firms compete
D) Easy entry and exit
E) Differentiated product

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by easy entry and exit, differentiated products, small market share, and no barriers to entry or exit. The presence of many firms is also a characteristic of monopolistic competition, so choice C, which states that few firms compete, is not a characteristic of this market structure.

Which of the Following Is NOT a Characteristic of Monopolistic