One difference between oligopoly and monopolistic competition is that
A) a monopolistically competitive industry has fewer firms.
B) in monopolistic competition, the products are identical.
C) monopolistic competition has barriers to entry.
D) fewer firms compete in oligopoly than in monopolistic competition.

Question

Quizplus · Accepted Answer

In an oligopoly, there are fewer firms, which often leads to more market power and interdependence among the firms. In contrast, monopolistic competition involves many firms competing with differentiated products.

One Difference Between Oligopoly and Monopolistic Competition Is That