Which of the following market structures would you expect to yield the greatest product variety?
A) Monopoly
B) Monopolistic competition
C) Bertrand oligopoly
D) Perfect competition

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by a large number of firms producing differentiated products. This leads to a wide range of product varieties as each firm tries to differentiate its product from its competitors in order to capture a larger market share. In contrast, a monopoly produces a single product, Bertrand oligopoly involves firms competing primarily on price, and perfect competition involves homogeneous products with little room for differentiation.

Which of the Following Market Structures Would You Expect to Yield