An industry comprising 40 firms, none of which has more than 3 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, characterized by many firms, differentiated products, and no single firm having a large market share.

An Industry Comprising 40 Firms, None of Which Has More