A feature of monopolistic competition is:
A) a patent-protected product.
B) homogeneous or standardized products.
C) considerable control over price.
D) nonprice competition.

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by nonprice competition, which includes advertising, product differentiation, and branding. This means firms have limited control over price as consumers have the ability to choose between products with slightly different characteristics, leading to a range of prices in the market. Option A, a patent-protected product, is more characteristic of a monopoly, while Option B, homogeneous or standardized products, is more characteristic of perfect competition. Option C, considerable control over price, is more characteristic of a monopoly or oligopoly market structure.

A Feature of Monopolistic Competition Is