Which of the following is unique to a monopolistically competitive firm when compared to an oligopoly?
A)The monopolistically competitive firm advertises.
B)The monopolistically competitive firm produces a quantity of output that falls short of the socially optimal level.
C)Monopolistic competition features many buyers.
D)Monopolistic competition features many sellers.

Question

Quizplus · Accepted Answer

Monopolistic competition is characterized by the presence of many sellers in the market, each offering a differentiated product, unlike an oligopoly, which typically has only a few dominant firms.

Which of the Following Is Unique to a Monopolistically Competitive