Under which of the following market structures would consumers likely receive the most product variety?
A)perfect competition
B)monopolistic competition
C)oligopoly
D)monopoly

Question

Quizplus · Accepted Answer

In monopolistic competition, there are many firms competing with each other, offering slightly differentiated products. This competition drives firms to provide more product variety to attract consumers. In perfect competition, all firms offer the exact same product, so there is no room for product variety. In oligopoly and monopoly, there are few or only one dominant firm(s), respectively, which may limit the amount of product variety available to consumers.

Under Which of the Following Market Structures Would Consumers Likely