Monopolistic competition is an industry structure characterized by:
A)a product with no close substitutes.
B)a horizontal demand curve.
C)a large number of firms.
D)barriers to entry and exit.

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by a large number of firms, each producing a slightly differentiated product, leading to a downward-sloping demand curve. There are no barriers to entry or exit, and consumers have some degree of brand loyalty.

Monopolistic Competition Is an Industry Structure Characterized By