Monopolistic competition is a market characterized by
A)one seller that competes against itself.
B)many sellers that produce identical products.
C)a few sellers that can impact the other sellers through their actions.
D)many sellers that produce different versions of the same product.

Question

Quizplus · Accepted Answer

Monopolistic competition is a market where there are many sellers that produce different versions of the same product. This means there is competition among the sellers, but each seller has a slight differentiation of their product from their competitors'. This allows them to have some control over the price they charge and differentiate their product in the eyes of the consumers.

Monopolistic Competition Is a Market Characterized by