The term monopolistic competition
A)is an alternate expression for monopoly
B)is used to describe perfect competition with strong entry barriers
C)denotes an industry with one seller of many differentiated products
D)denotes an industry with many sellers of homogeneous products
E)denotes an industry with many sellers of differentiated products

Question

Quizplus · Accepted Answer

Monopolistic competition denotes an industry with many sellers of differentiated products. This means that each seller offers a slightly different version of a product or service, allowing them to have some market power and ability to differentiate themselves from their competitors, but there are still many other competitors in the market.

The Term Monopolistic Competition