Monopolistically competitive firms are typically characterised by:
A)many firms selling identical products
B)a few firms selling similar or identical products
C)a few firms selling highly different products
D)many firms selling similar, but not identical products

Question

Quizplus · Accepted Answer

Monopolistically competitive firms are characterized by many firms selling similar, but not identical products, which allows them to differentiate their product offerings and have some degree of market power. This differentiation, along with easy entry and exit, leads to monopolistic competition.

Monopolistically Competitive Firms Are Typically Characterised By