Which type of competition is characterized by a large number of firms, heterogeneous products and low cost of entry and exit?
A) perfect competition
B) monopolistic competition
C) oligopoly
D) monopoly

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by a large number of firms, offering slightly different products, with low barriers to entry and exit. This type of competition is different from perfect competition in that firms have some control over the price of their product due to product differentiation. Oligopoly and monopoly, on the other hand, are characterized by a small number of firms and high barriers to entry.

Which Type of Competition Is Characterized by a Large Number