Which of the following is not a characteristic of monopolistic competition?

Question

Quizplus · Accepted Answer

Standardized products are a characteristic of perfect competition, not monopolistic competition. Monopolistic competition involves differentiated products, which distinguish firms from one another and can lead to a downward sloping demand curve. Excess capacity is also a feature of monopolistic competition, as firms may produce less than their full capacity in order to maintain their prices. Finally, free entry and exit allows for new firms to enter the market and compete, leading to ongoing product differentiation and innovation.

Which of the Following Is Not a Characteristic of Monopolistic