Which of the following market structures would you expect to yield the greatest product variety?
A)Monopoly.
B)Monopolistic Competition.
C)Bertrand Oligopoly.
D)Perfect Competition.

Question

Quizplus · Accepted Answer

Monopolistic Competition is the market structure where there are many firms selling differentiated products. As each firm tries to differentiate its product from the others to attract more customers, there is a greater variety of products available in the market. In contrast, in a monopoly or perfect competition, there is only one product available, or all products are homogenous, respectively. In a Bertrand Oligopoly, firms are likely to produce similar products, leading to less variety.

Which of the Following Market Structures Would You Expect to Yield