Which of the following is NOT a basic feature of a monopolistically competitive industry?
A) There are many buyers and sellers in the industry.
B) Each firm in the industry produces a differentiated product.
C) There is free entry and exit into the industry.
D) Each firm owns a patent on its product.

Question

Quizplus · Accepted Answer

Owning a patent on its product is not a basic feature of a monopolistically competitive industry. In fact, monopolistic competition involves firms producing similar but not identical products, which implies that no single firm can hold a patent over its differentiated product. The other options; A, B, and C are basic features of monopolistic competition.

Which of the Following Is NOT a Basic Feature of a Monopolistically