Select the type of market that is described by the following attributes: many firms, differentiated products, and free entry.
A)natural monopoly
B)perfectly competition
C)monopolistic competition
D)monopoly

Question

Quizplus · Accepted Answer

The given attributes describe the characteristics of monopolistic competition, where there are many firms producing differentiated products and there are no significant barriers to entry or exit. Natural monopoly and monopoly both imply the presence of a single dominant firm in the market, and perfect competition implies the absence of any differentiation among the products offered by the firms.

Select the Type of Market That Is Described by the Following