Markets with a large number of firms selling differentiated products, and where entry into and exit from the market are fairly easy, are:
A) oligopolies.
B) monopolies.
C) pure competitors.
D) monopolistic competitors.

Question

Quizplus · Accepted Answer

Markets characterized by a large number of firms selling differentiated products and where entry and exit are relatively easy are known as monopolistic competition. This differentiates them from oligopolies, monopolies, and pure competition due to the unique combination of product differentiation and ease of market entry/exit.

Markets with a Large Number of Firms Selling Differentiated Products