Which of the following is NOT a characteristic of monopolistic competition?
A) product differentiation
B) lack of barriers to entry and exit in the long run
C) many competing producers
D) tacit collusion

Question

Quizplus · Accepted Answer

Tacit collusion is not a characteristic of monopolistic competition; it is more associated with oligopolies where a few firms may implicitly agree to avoid competition. Monopolistic competition involves many firms with differentiated products and free entry and exit.

Which of the Following Is NOT a Characteristic of Monopolistic