When there are many buyers and sellers,no significant barriers to entry,and a differentiated product,the market structure is called
A)an oligopoly
B)perfect competition
C)monopolistic competition
D)a monopoly
E)unbalanced monopoly

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by many small firms competing against each other with differentiated products. There are no significant barriers to entry, meaning that new firms can easily enter the market. However, because of the differentiated products, each firm has some degree of pricing power, which creates some market power. This distinguishes monopolistic competition from perfect competition. Oligopoly involves a few large firms dominating the market, while a monopoly involves only one firm in the market. Unbalanced monopoly is not a recognized market structure term.

When There Are Many Buyers and Sellers,no Significant Barriers to Entry,and