All of the following,except one,are characteristics of monopolistic competition.Which is the exception?
A)There is a large number of sellers.
B)Each seller faces a horizontal demand curve for its product.
C)There are no significant barriers to entry or exit.
D)Sellers produce differentiated products.
E)There is a large number of buyers.

Question

Quizplus · Accepted Answer

In monopolistic competition, each seller faces a downward-sloping demand curve due to product differentiation. Therefore, option B stating that each seller faces a horizontal demand curve is the exception.

All of the Following,except One,are Characteristics of Monopolistic Competition