Which of the following is correct regarding monopolistic competition?
A) There are many competitors in the industry.
B) Products are differentiated.
C) Competitors can enter and leave the market easily.
D) Competitors may be large or small.
E) All of these statements are correct.

Question

Quizplus · Accepted Answer

Monopolistic competition is a market structure characterized by many competitors, differentiated products, and easy entry and exit. Competitors in monopolistic competition may be large or small, and they differentiate their product to attract customers. Therefore, all of these statements are correct regarding monopolistic competition.

Which of the Following Is Correct Regarding Monopolistic Competition