___________ exists when a large number of firms produce goods that are similar but are perceived by buyers as being different.
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) A monopoly

Question

Quizplus · Accepted Answer

Monopolistic competition exists when there are many firms producing similar goods, but each firm differentiates their product in some way to make it unique or appealing to customers. This leads to a degree of market power for each firm and some control over pricing.

___________ Exists When a Large Number of Firms Produce Goods