Which market structure is characterised by the following characteristics? i. A large number of firms compete.
Ii) Each firm produces a differentiated product.
Iii) Firms are free to enter and exit.
A) Monopolistic competition
B) Monopoly
C) Duopoly
D) Oligopoly
E) Perfect competition

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by a large number of firms producing differentiated products and free entry and exit.

Which Market Structure Is Characterised by the Following Characteristics? I