Monopolistic competition is characterized by many buyers and sellers, product differentiation, and free entry.

Question

Quizplus · Accepted Answer

Monopolistic competition is indeed characterized by the presence of many buyers and sellers, product differentiation (where each firm offers a product that is slightly different from the others), and free entry and exit in the market, allowing firms to enter the market if they see a profit opportunity and to exit if they cannot compete effectively.

Monopolistic Competition Is Characterized by Many Buyers and Sellers, Product