Firms in an industry that produces a differentiated product
A) are either monopolists or oligopolists.
B) are either monopolistically competitive or perfectly competitive.
C) are either monopolistically competitive or oligopolists.
D) are either perfectly competitive or oligopolists.

Question

Quizplus · Accepted Answer

Firms in an industry that produces a differentiated product are typically either monopolistically competitive or oligopolists. Monopolistic competition involves many firms offering slightly different products, while oligopoly involves a few firms with differentiated products.

Firms in an Industry That Produces a Differentiated Product