Which of the following is not a requirement for the existence of monopolistic competition in a market?
A)numerous small sellers
B)full information about the market among buyers and sellers
C)product homogeneity
D)freedom of entry into the market

Question

Which of the following is not a requirement for the existence of monopolistic competition in a market?
A)numerous small sellers 
B)full information about the market among buyers and sellers 
C)product homogeneity 
D)freedom of entry into the market

Quizplus · Accepted Answer

Product homogeneity is not a requirement for the existence of monopolistic competition. In fact, in monopolistic competition, firms differentiate their products from their competitors in order to gain a larger market share. The other options - numerous small sellers, full information about the market among buyers and sellers, and freedom of entry into the market - are requirements for the existence of monopolistic competition.

Which of the Following Is Not a Requirement for the Existence