________ exists when a large number of firms produce goods that are similar but customers believe there is a difference.
A) Perfect competition
B) Monopolistic competition
C) Oligopoly
D) A monopoly

Question

Quizplus · Accepted Answer

Monopolistic competition exists when a large number of firms produce goods that are similar but customers believe there is a difference. In this type of market structure, firms have limited control over the price of their products, but they can differentiate their products through marketing, packaging, design, and other characteristics. This allows them to compete with other firms and attract customers to their products.

________ Exists When a Large Number of Firms Produce Goods