Which of the following statements best describes firms under monopolistic competition?
A) There is little price or quality competition.
B) Firms compete using quality, location, advertising and price.
C) Firms do not compete using advertising.
D) There is little competition between firms.

Question

Quizplus · Accepted Answer

Firms under monopolistic competition compete based on product differentiation, which includes quality, location, advertising, and price. There is competition between firms, but it is not as intense as under perfect competition or monopoly.

Which of the Following Statements Best Describes Firms Under Monopolistic