The competition faced by firms in an oligopoly with differentiated products is higher than that faced by firms in ________.

Question

Quizplus · Accepted Answer

In an oligopoly with differentiated products, firms face significant competition, but it is not as intense as in perfect competition or monopolistic competition, where there are many firms competing. A duopoly with homogeneous products also involves direct competition, but between only two firms. A monopoly faces the least competition since it is the sole provider of a product or service in the market.

The Competition Faced by Firms in an Oligopoly with Differentiated