Monopolistic competition is a market situation in which
A) similar but not identical products are available.
B) only one product is available.
C) several identical products are available.
D) the same price is charged for all products.
E) the government regulates prices.

Question

Quizplus · Accepted Answer

Monopolistic competition refers to a market structure where there are many sellers offering differentiated products that are substitutes but not perfect substitutes. This means that while the products may be similar, they are not identical. Therefore, choice A is the correct answer. Choices B, C, D, and E do not accurately describe monopolistic competition.

Monopolistic Competition Is a Market Situation in Which