An industry comprising 50 firms, each with about 2 percent of the total market for a differentiated product, is an example of
A)monopolistic competition.
B)oligopoly.
C)pure monopoly.
D)pure competition.

Question

Quizplus · Accepted Answer

This scenario describes monopolistic competition, where many firms compete with differentiated products, and each holds a small portion of the market share, which aligns with the description of having 50 firms each with about 2% of the total market.

An Industry Comprising 50 Firms, Each with About 2 Percent