When many firms sell closely related but not homogeneous products, it is called:
A)pure competition.
B)price engagement.
C)monopolistic competition.
D)oligopsony.
E)monopsony.

Question

Quizplus · Accepted Answer

Monopolistic competition occurs when many firms sell closely related but not homogeneous products. In this type of market structure, each firm has a certain degree of market power as they can differentiate their products from those of their competitors. This allows them to charge a slightly different price and attract customers that value their product's unique features.

When Many Firms Sell Closely Related but Not Homogeneous Products