In a market with ________, there are many sellers, each offering a slightly different product. Firms can differentiate products and focus on nonprice competition.
A) pure competition
B) monopolistic competition
C) oligopolistic competition
D) vertical integration
E) inflation

Question

Quizplus · Accepted Answer

This describes monopolistic competition, where there are many sellers with differentiated products. This allows for competition based on factors other than price, such as product features or marketing. Pure competition has identical products and price is the only factor, while oligopolistic competition involves a small number of large firms dominating the market. Vertical integration refers to a company owning and controlling multiple stages of the production process. Inflation refers to a general increase in prices.

In a Market with ________, There Are Many Sellers, Each