Monopolistic competition is best defined as
A) a structure that has many buyers and sellers, but the products are differentiated on some basis.
B) a structure where customers are willing to pay a little more for the unique feature that appeals to them.
C) a structure that combines perfect competition and monopoly, but is closer to a competitive situation.
D) all of these.

Question

Quizplus · Accepted Answer

Monopolistic competition is best defined as a market structure that has many buyers and sellers, but the products are differentiated on some basis. As a result, customers are willing to pay a little more for the unique feature that appeals to them. This structure combines elements of perfect competition, such as many buyers and sellers, with elements of monopoly, such as product differentiation. Therefore, all of the given choices are correct.

Monopolistic Competition Is Best Defined as