Under monopolistic competition, _____.

Question

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Monopolistic competition is characterized by a large number of firms producing differentiated products, which means that there are few barriers to entry. In contrast, monopolies have significant barriers to entry as there is only one producer and oligopolies have a few large producers selling standardized or differentiated products. Perfectly elastic demand curves are only found in perfectly competitive markets, where many firms sell identical products.

Under Monopolistic Competition, _____