A monopolistically competitive market is characterized by:
A) many sellers selling a differentiated product.
B) a single seller of a unique product that has few or no substitutes.
C) very high barriers to entry.
D) many small sellers selling an identical product.
E) a few firms producing either differentiated or identical products.

Question

Quizplus · Accepted Answer

A monopolistically competitive market has many sellers selling similar but differentiated products. This means that each seller has some market power, but they are still competing with each other. There are low barriers to entry, and products are not identical.

A Monopolistically Competitive Market Is Characterized By