Monopolistic competition is different from perfect competition because monopolistic competitors produce
A)a homogeneous product
B)a homogeneous but unique product
C)identical products
D)differentiated products
E)products similar to those produced by a monopoly

Question

Quizplus · Accepted Answer

Monopolistic competitors produce differentiated products, meaning that their products are similar but not identical to those of their competitors. This allows them to have some degree of market power and control over the price of their product. In contrast, perfect competition involves firms producing homogeneous (identical) products.

Monopolistic Competition Is Different from Perfect Competition Because Monopolistic Competitors