When an industry has many firms,the industry may be which of the following

Question

Quizplus · Accepted Answer

If the firms sell differentiated products, then it means that they are offering products that have some unique features that make them different from their competitors. Therefore, the firms are monopolistically competitive. On the other hand, if the firms sell identical products, then they are offering products that are virtually the same, and there is very little room for differentiation or product development. In this case, the industry is perfectly competitive.

When an Industry Has Many Firms,the Industry May Be Which