Which market structure is characterized by the following characteristics?
i.a large number of firms compete
ii.each firm produces a differentiated product
iii.firms are free to enter and exit
A) perfect competition
B) duopoly
C) oligopoly
D) monopolistic competition
E) monopoly

Question

Quizplus · Accepted Answer

The characteristics described match those of monopolistic competition, where there are many firms producing differentiated products in a market that is relatively easy to enter and exit.

Which Market Structure Is Characterized by the Following Characteristics