Monopolistic competition is a market structure in which there are
A) no good substitutes produced within the industry, giving each firm substantial market share
B) perfect substitutes produced within the industries, giving each firm only partial market share
C) monopolies competing to create monopolistic competition in the short run and oligopoly in the long run
D) a large number of substitute goods produced in the industry
E) only a few firms in the industry

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by a large number of firms producing similar but not identical products, which are considered substitute goods. This allows for some degree of market power for individual firms while maintaining competitive market dynamics.

Monopolistic Competition Is a Market Structure in Which There Are