Which of the following is not a characteristic of monopolistic competition?
A)There are many buyers and sellers.
B)There are low barriers to entry.
C)Average revenue is equal to price.
D)The products sold by all firms are identical.

Question

Quizplus · Accepted Answer

Monopolistic competition implies that products sold by different firms are not identical but differentiated, which allows firms to have some degree of market power and the ability to set prices slightly higher than their marginal costs. Therefore, the correct option is D as it contradicts this characteristic.

Which of the Following Is Not a Characteristic of Monopolistic