Monopolistic competition is best defined as
A)a structure that has many buyers and sellers, but the products are differentiated on some basis.
B)a structure where customers are willing to pay a little more for the unique feature that appeals to them.
C)a structure that combines perfect competition and monopoly, but is closer to a competitive situation.
D)all of the above.

Question

Quizplus · Accepted Answer

Monopolistic competition is a market structure that has many buyers and sellers, but the products are differentiated on some basis. Customers are willing to pay a little more for the unique feature that appeals to them. This structure combines elements of both perfect competition and monopoly, but is closer to a competitive situation. Therefore, all of the above options are correct.

Monopolistic Competition Is Best Defined as