Monopolistic competition
A) is the same as monopoly.
B) is more similar to perfect competition than to monopoly.
C) is just like monopoly,but with more market power.
D) is a combination of oligopoly and monopoly.
E) cannot legally exist in the United States because of antitrust laws.

Question

Quizplus · Accepted Answer

Monopolistic competition is a market structure characterized by many firms selling differentiated products, meaning that they are not perfect substitutes. This leads to a certain degree of market power for individual firms, but they still face competition from other similar firms. Therefore, monopolistic competition is more similar to perfect competition than to monopoly, as there are many buyers and sellers, low barriers to entry and exit, and no single firm can dominate the market.

Monopolistic Competition