In a monopolistically competitive industry,the competitive element results from ____ and the monopoly element results from ____.
A) product differentiation; substantial barriers to entry.
B) a large number of firms and free entry; product differentiation.
C) advertising; product differentiation.
D) product differentiation; the small number of large producers.

Question

Quizplus · Accepted Answer

In a monopolistically competitive industry, there are a large number of firms and free entry which leads to competitive elements, and the monopoly elements result from product differentiation.

In a Monopolistically Competitive Industry,the Competitive Element Results from ____