If a firm in a purely competitive market can differentiate its product or service, it becomes part of a(n)________ market.
A)pure competition
B)oligopolistic competition
C)monopolistic competition
D)monopoly
E)duopoly

Question

Quizplus · Accepted Answer

If a firm in a purely competitive market can differentiate its product or service, it becomes part of a monopolistic competition market, where there are many firms that sell differentiated products or services but they are not perfect substitutes. This allows firms in this type of market to have some degree of market power and control over the price of their product or service, unlike in a pure competition market where price is determined solely by market forces.

If a Firm in a Purely Competitive Market Can Differentiate