Which of the following is NOT characteristic of a monopolistically competitive industry?
A) monopoly profits
B) many firms in the industry
C) differentiated products
D) Individual firms can influence the market price.

Question

Quizplus · Accepted Answer

Monopoly profits are not characteristic of a monopolistically competitive industry. In this type of industry, many firms compete by producing differentiated products, which allows them some degree of market power, but they do not have full monopoly power to earn abnormally high profits in the long run. Additionally, individual firms may be able to influence the market price to some extent, but the overall market remains competitive due to the presence of many firms.

Which of the Following Is NOT Characteristic of a Monopolistically