Assume it is announced that a large number of new competitors have entered the market for mountain bikes,each offering a different model.Based on this information,this industry is best characterized as:
A)perfectly competitive.
B)a monopoly.
C)monopolistically competitive.
D)an oligopoly.

Question

Quizplus · Accepted Answer

The presence of a large number of new competitors offering different models indicates that there is differentiation in the products offered, which is a characteristic of monopolistic competition. Perfectly competitive markets have homogeneous products, monopolies have a single seller, and oligopolies have a small number of large firms dominating the market.

Assume It Is Announced That a Large Number of New