Which of the following is NOT a characteristic of a monopolistically competitive market?
A) Products are differentiated.
B) Entry into the market is difficult.
C) There is a large number of sellers.
D) Sellers earn no excess profits over the long run.

Question

Quizplus · Accepted Answer

In a monopolistically competitive market, entry into the market is relatively easy compared to a monopoly or an oligopoly, where significant barriers to entry exist. This ease of entry is what differentiates it from markets with higher barriers and is crucial for the dynamic nature of monopolistic competition, where new firms can enter the market with differentiated products.

Which of the Following Is NOT a Characteristic of a Monopolistically