Competition in which there are many buyers, a lot of product differentiation, and relative ease of entry or exit of the market is known as
A) monopoly.
B) oligopolistic competition.
C) oligopoly.
D) perfect competition.
E) monopolistic competition.

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by many buyers, several firms producing differentiated products, and low barriers to entry and exit. In this type of market, firms have some degree of market power due to product differentiation, but still face competition from other firms producing similar products. This type of competition is commonly found in the retail and service industries.

Competition in Which There Are Many Buyers, a Lot of Product