In _____ market structure, firms sell differentiated products, but due to competitive pressures, firms are limited in their ability to set prices.

Question

Quizplus · Accepted Answer

In a monopolistic competition market structure, firms sell differentiated products, which allows them some degree of price-setting power. However, the presence of many competitors ensures that this power is limited, as consumers can switch to substitute products if prices rise too much.

In _____ Market Structure, Firms Sell Differentiated Products, but Due