_____ markets are populated by a large number of differentiated sellers.
A) Oligopolies
B) Monopolistically competitive
C) Purely monopolistic
D) Purely competitive
E) Perfectly competitive

Question

Quizplus · Accepted Answer

Monopolistically competitive markets have a large number of differentiated sellers, meaning each firm has a slightly different product than its competitors. This allows for some degree of market power and differentiation, but also keeps prices and profits in check due to competition. Oligopolies have a small number of large firms, pure monopolies have only one seller, purely competitive markets have identical products and a large number of small sellers, and perfectly competitive markets have no market power or ability to differentiate products.

_____ Markets Are Populated by a Large Number of Differentiated