An industry with a large number of firms,differentiated products,and free entry and exit is called
A) perfect competition.
B) monopolistic competition.
C) oligopoly.
D) monopoly.
E) monopolistic oligopoly.

Question

Quizplus · Accepted Answer

A large number of firms, differentiated products, and free entry and exit are the characteristics of monopolistic competition. Perfect competition has homogeneous products, low barriers to entry and exit, and a large number of small firms. Oligopoly has only a few large firms dominating the market, which can result in collusion and strategic behavior. Monopoly has a single firm dominating the market, and monopolistic oligopoly is not a recognized economic term.

An Industry with a Large Number of Firms,differentiated Products,and Free