One difference between perfect competition and monopolistic competition is that:
A)In perfect competition, the products are slightly differentiated between firms
B)There are a larger number of firms in monopolistic competition
C)There are a smaller number of firms in perfectly competitive industries
D)Firms in monopolistic competition have some degree of market power

Question

Quizplus · Accepted Answer

In monopolistic competition, firms sell differentiated products, which gives them some degree of market power, unlike in perfect competition where products are identical and firms are price takers.

One Difference Between Perfect Competition and Monopolistic Competition Is That