Which of the following describes monopolistic competition?

Question

Quizplus · Accepted Answer

Monopolistic competition is a market structure in which firms sell differentiated products, meaning products that are similar but not identical to those of other firms. As a result, advertising plays a key role in creating brand loyalty and product differentiation. Firms also have some degree of control over their prices, so they are not price takers (choice B). Homogeneous products (choice A) are more characteristic of perfect competition, while there is only one seller in a monopoly (choice D).

Which of the Following Describes Monopolistic Competition