Which of the following is NOT a feature of a monopolistically competitive market?

Question

Quizplus · Accepted Answer

In a monopolistically competitive market, products are not homogenous and therefore, the demand curve is not perfectly elastic. Instead, each firm faces a downward-sloping demand curve, which means that they have some degree of market power to set their own price. The other three features listed (numerous buyers and sellers, differentiated products, and advertising) are all characteristic of monopolistically competitive markets.

Which of the Following Is NOT a Feature of a Monopolistically