Which of the following market structures is considered a differentiated products market?
A)Perfect competition
B)Monopolistic competition
C)Monopoly
D)Both a and b are differentiated products markets.

Question

Quizplus · Accepted Answer

Monopolistic competition is considered a differentiated products market because firms sell products that are similar but not identical, creating some degree of product differentiation. Perfect competition does not involve product differentiation as all firms sell identical products. Monopoly involves a single firm with no close substitutes, so there is no need for product differentiation. Option D is incorrect because perfect competition is not considered a differentiated products market.

Which of the Following Market Structures Is Considered a Differentiated