Which of the following statements best describes firms under monopolistic competition?
A) There is little price or quality competition.
B) The firms compete, using quality, location, advertising, and price.
C) Firms do not compete using advertising.
D) There is little competition between firms.

Question

Quizplus · Accepted Answer

Firms under monopolistic competition compete using a variety of methods, including quality, location, advertising, and price. This competition results in a range of product differentiation within the market, with each firm offering slightly different products or services to attract customers.

Which of the Following Statements Best Describes Firms Under Monopolistic