Which market structure(s) is characterized by a large number of firms and a large number of buyers?

Question

Quizplus · Accepted Answer

The market structure characterized by a large number of firms and a large number of buyers is called monopolistic competition. This is because in perfect competition, there are no differentiated products, and in oligopoly and duopoly, there are a limited number of firms. Monopolistic competition is characterized by many firms selling differentiated products to many buyers, resulting in a competitive market with some degree of market power for firms due to brand loyalty or product differentiation.

Which Market Structure(s) Is Characterized by a Large Number of Firms