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

Question

Quizplus · Accepted Answer

Monopolistic competition is a system in which firms compete by selling differentiated products, meaning each firm offers products that are slightly different from those of their competitors. This differentiation can come in the form of branding, packaging, or features, among others. This type of system allows for some degree of price setting power for individual firms, but still has some level of competition. The other choices either involve a single firm dominating the market (monopoly or natural monopoly) or a small number of firms controlling the market (oligopoly).

In Which of the Following Systems Do Firms Compete by Selling