A monopolistically competitive industry is characterized by
A)many firms selling products that are similar but not identical.
B)many firms selling identical products.
C)a few firms selling products that are similar but not identical.
D)a few firms selling highly different products.

Question

Quizplus · Accepted Answer

A monopolistically competitive market consists of many firms selling products that are similar but not identical, which allows for some degree of product differentiation and non-price competition. This leads to a more competitive market compared to a monopoly or oligopoly, as no single firm has significant control over the market.

A Monopolistically Competitive Industry Is Characterized by