__________________ is the crucial characteristic of monopolistic competition.

Question

Quizplus · Accepted Answer

The crucial characteristic of monopolistic competition is product differentiation. This means that firms in this market structure sell products that are similar but not identical, and they use marketing and advertising to create a perceived difference between their product and others. This allows them to charge slightly higher prices and capture a loyal customer base. Price discrimination and economies of scale are not necessarily associated with monopolistic competition, and identical products are not a characteristic of this market structure.

__________________ Is the Crucial Characteristic of Monopolistic Competition