Which of the following is a characteristic of 'monopolistic competition'?

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by a high degree of product differentiation, meaning that each seller offers a slightly different product that is not perfectly substitutable for other products in the market. This allows sellers to have some control over price, although they still face competition from other sellers offering similar products. Option A is incorrect because both buyers and sellers may have some influence over price in monopolistic competition. Option C is incorrect because monopolistic competition involves a large number of sellers and a high degree of product differentiation, not a limited number of suppliers and limited product differentiation. Option D is incorrect because sellers can have some influence over price in monopolistic competition.

Which of the Following Is a Characteristic of 'Monopolistic Competition