A product- market that consists of many buyers and sellers who trade over a range of prices rather than a single market price and where the sellers differentiate their offers, is known as:
A) monopolistic competition.
B) pure competition.
C) oligopolistic competition.
D) free market.
E) monopoly.

Question

Quizplus · Accepted Answer

The description provided matches with the characteristics of monopolistic competition, where there are many sellers and buyers trading over a range of prices and the sellers differentiate their offerings to create a perceived difference in the eyes of the buyers. In a pure competition, there is a single market price, and the sellers cannot differentiate their products or services. Oligopolistic competition involves a few sellers dominating the market. A free market is a market where prices are determined by the forces of supply and demand, and a monopoly involves a single seller with no close substitutes.

A Product- Market That Consists of Many Buyers and Sellers