In which of the following do firms compete by selling differentiated products?
A)monopolistic competition
B)natural monopoly
C)monopoly
D)oligopoly

Question

Quizplus · Accepted Answer

In monopolistic competition, firms compete by selling differentiated products, which means they offer similar but not identical goods or services that are distinguished from one another by factors such as quality, design, features, or branding. This allows firms to have some market power and to charge different prices based on the perceived differences between their products and those of their competitors. In contrast, in a natural monopoly, there is only one firm in the market that can supply the good or service at a lower cost than any potential competitor, while in a monopoly there is only one firm in the market with no close substitutes, and in an oligopoly, a small number of firms dominate the market and may compete on a variety of levels, including price, advertising, research and development, and other strategic choices.

In Which of the Following Do Firms Compete by Selling