Which is the most accurate statement?

Question

Quizplus · Accepted Answer

According to economists, most industries in the United States can be classified as monopolistically competitive. This is because there are usually many firms that produce slightly differentiated products, and these firms have some power to set prices.

Option A is incorrect because monopolistically competitive industries are characterized by a large number of firms, not too many.

Option B is incorrect because the main advantage of monopolistic competition is the diversity of products and services provided by different firms.

Option D is incorrect because over-differentiation is not considered a major problem with monopolistic competition. In fact, it is one of the defining features of this market structure.

Which Is the Most Accurate Statement