The monopolistic competition market structure is characterized by:
A) few firms and similar products.
B) many firms and differentiated products.
C) many firms and a homogeneous product.
D) few firms and a homogeneous product.

Question

Quizplus · Accepted Answer

Monopolistic competition is a market structure with many firms and differentiated products. This means that each firm produces a slightly different product or service, creating a degree of product differentiation that allows firms to have some market power and control over their prices.

The Monopolistic Competition Market Structure Is Characterized By