An industry comprising 40 firms, each with about 2-3 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 offering differentiated products and each holding a small percentage of the market share.

An Industry Comprising 40 Firms, Each with About 2-3 Percent