Monopolistic competition is characterized by a
A)few dominant firms and low entry barriers.
B)large number of firms and substantial entry barriers.
C)large number of firms and low entry barriers.
D)few dominant firms and substantial entry barriers.

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by a market structure where there is a large number of firms that differentiate their products from those of competitors, leading to non-price competition. This differentiation, along with low entry barriers, allows for many firms to enter and exit the market with relative ease.

Monopolistic Competition Is Characterized by a