Monopolistic competitors have _______ rivals who produce _________ goods and services.

Question

Quizplus · Accepted Answer

Monopolistic competitors have many rivals who produce close substitute goods and services. This is the defining characteristic of a monopolistic competition market structure, where firms can differentiate their products through branding, packaging, location, etc. and compete for a share of the market. However, the goods and services are not completely identical, which allows firms to have some degree of market power and charge slightly higher prices.

Monopolistic Competitors Have _______ Rivals Who Produce _________ Goods and Services

Monopolistic Competitors Have _ Rivals Who Produce ___ Goods and Services