An industry characterized by many firms producing similar but differentiated products in a market with easy entry and exit is called:
A)perfectly competitive.
B)monopolistic.
C)monopolistically competitive.
D)oligopolistic.

Question

Quizplus · Accepted Answer

The description given in the question matches the characteristics of a monopolistically competitive market. In this market, there are many firms producing differentiated products, meaning that they are not perfect substitutes for each other. The ease of entry and exit also implies that there are low barriers to entry, and firms can enter and exit the market relatively quickly.

An Industry Characterized by Many Firms Producing Similar but Differentiated