Which of the following market structures involves a heterogeneous product and product differentiation among competing suppliers,allowing the marketer some degree of control over prices?
A)Pure competition
B)Monopolistic competition
C)Complementary monopoly
D)Monopoly

Question

Quizplus · Accepted Answer

Monopolistic competition involves a heterogeneous product and product differentiation, allowing marketers some degree of control over prices. In this market structure, there are multiple suppliers, but each supplier offers a slightly different product that is unique in some way, such as differences in quality, features, or branding. As a result, marketers can differentiate their products to attract customers and may be able to charge higher prices if their differentiated product is perceived as superior by consumers. Pure competition involves virtually identical products and no control over prices, while monopoly and complementary monopoly involve a single supplier and no competition or minimal competition, respectively.

Which of the Following Market Structures Involves a Heterogeneous Product