Which of the following is not an assumption of the theory of monopolistic competition?
A)There are high barriers to entry.
B)There are many sellers and few buyers.
C)Each firm in the industry produces and sells a homogeneous product.
D)a and b
E)all of the above

Question

Quizplus · Accepted Answer

Monopolistic competition assumes low barriers to entry, many sellers and buyers, and differentiated products, not homogeneous ones.

Which of the Following Is Not an Assumption of the Theory