Which of the following markets is characterized by the following: many firms in the industry, a somewhat unique product, fairly easy entry into the industry, and spending for differentiation of the product?
A)perfectly competitive market
B)monopolistic competition
C)monopoly
D)oligopoly

Question

Quizplus · Accepted Answer

The characteristics described fit the definition of monopolistic competition, where there are many firms offering slightly different products and competition is based on product differentiation. It is relatively easy to enter the market, but each firm spends on advertising and product development to stand out.

Which of the Following Markets Is Characterized by the Following