Monopolistic competition is characterized by:

Question

Quizplus · Accepted Answer

Monopolistic competition is identified by the differentiation of products in the marketplace. Each firm attempts to create a product that is somewhat different from the other firms, thereby hoping to establish a sort of monopoly or market power in the product's market. This differentiation makes the products non-homogeneous, leading to consumer preferences and the inability to fully substitute products. The other options- B, C, and D- are not always present in a monopolistic competition market.

Monopolistic Competition Is Characterized By