Which characteristic is NOT indicative of monopolistic competition?
A)product differentiation
B)a lack of barriers to entry and exit in the long run
C)many competing producers
D)tacit collusion

Question

Quizplus · Accepted Answer

Tacit collusion is not indicative of monopolistic competition. Monopolistic competition is characterized by product differentiation, a lack of barriers to entry and exit in the long run, and many competing producers. Tacit collusion, on the other hand, suggests a more oligopolistic market structure where a few firms cooperate to maximize profits.

Which Characteristic Is NOT Indicative of Monopolistic Competition