Which type of competition is characterized by a large number of firms,heterogeneous products and low cost of entry and exit?
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) Monopoly

Question

Quizplus · Accepted Answer

The description fits the characteristics of monopolistic competition, where there is a large number of firms producing differentiated products, and firms can enter or exit the industry easily due to low barriers to entry. Perfect competition also has a large number of firms and low barriers to entry, but the products are homogeneous. Oligopoly has a small number of dominant firms and high barriers to entry, while monopoly has only one firm and high barriers to entry.

Which Type of Competition Is Characterized by a Large Number