Which of the following conditions distinguishes monopolistic competition from perfect competition?
A)number of sellers
B)freedom of entry and exit
C)perfect information
D)homogeneity of the product

Question

Which of the following conditions distinguishes monopolistic competition from perfect competition?
A)number of sellers 
B)freedom of entry and exit 
C)perfect information 
D)homogeneity of the product

Quizplus · Accepted Answer

Monopolistic competition features differentiated products, whereas perfect competition requires homogeneity of the product. The number of sellers, freedom of entry and exit, and perfect information characterizes both types of competition.

Which of the Following Conditions Distinguishes Monopolistic Competition from Perfect